Wilderness Products, Inc. has designed a selflnflating sleeping pad for use by backpackers and campers. The following information is available about the new product a. An investment of $1180,000 will be necessary to carry inventories and accounts recelvable and to purchase some new equipment needed in the manufacturing process. The company's required rate of ret urn is 21% on all 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 4.0 yards S 4.30 per yard S 1720 Direct materials 3.0 hours S 9.20 per hour 2760 Direct labo Manufacturing overhead (YS variable) 3.0 hours S13.60 per hour 40.80 S 85.60 Total standard cost per pa c. The only variable selling and administrative expense will be a sales commission of $8 per pad. Fixed selling and administrative expenses will be per year 72,000 Salaries Warehouse rent 60.000 1,204,200 Advertising and othe $1,336,200 Total d. Because the company manufactures many products, no more than 48000 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