In: Accounting
National Corporation needs to set a target price for its newly designed product M15. The following data relate to this new product. Per unit : Direct materials $26, Direct labor $35, Variable manufacturing overhead $13, Variable selling and administrative expenses $6 and then Total is Fixed manufacturing overhead $1,000,000 and Fixed selling and administrative expenses $600,000 These costs are based on a budgeted volume of 80,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 45%.Instructionsa. Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M15 b) Compute the desired profit (ROI) per unit (or the markup per unit on total unit cost) for M15 C) Compute the target selling price for M15. Show all work please thanks
National Corporation needs to set a target price for its newly designed product M15. The following data relate to this new product