Question Content Area

Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of $61,300$ units of its sole product. Magpie desires a profit equal to a $22\%$ return on invested assets of $$562,000.$

Line Item Description Amount

Fixed factory overhead cost $$35,100$

Fixed selling and administrative costs $7,600$

Variable direct materials cost per unit $4\mathrm{.}37$

Variable direct labor cost per unit $1\mathrm{.}88$

Variable factory overhead cost per unit $1\mathrm{.}13$

Variable selling and administrative cost per unit $4\mathrm{.}50$

The dollar amount of desired profit from the production and sale of Magpie's product is