Wilderness Products, Inc., has designed a self-inflating sleeping pad for use by backpackers and campers The following information is available about the new product a. An investment of $1,340,000 will be necessary to carry inventories and accounts receivable and to purchase some new equipment needed in the manufacturing process. The company's required rate of return is 22% on a investments. b. A standard cost card has been prepared for the sleeping pad, as shown below: Standard Standard Standard Quantity or Hours Price or Rate Cost Direct materials 5.0 yards 400 per yard 20.00 31 hours 8.20 per hour 25.42 Direct labor Manufacturing overhead (V5 variable) 31 hours 14.30 per hour 44.33 8975 Total standard cost per pad c. The only variable selling and administrative expense will be a sales commission of $7 per pad. Fixed selling and administrative expenses will be (per year): 67,000 Salaries 60,000 Warehouse rent Advertising and other 1,471,575 1,598,575 Total d. Because the company manufactures many products, n o more than 55,800 direct labor-hours per year can be devoted to production of the new sleeping pads e. Manufacturing overhead costs are allocated to products on the basis of direct labor-hours