Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000.
Fixed factoryoverhead cost $82,000~Fixed selling and admin costs 45,000~variable direct materials cost per unit 5.50~variable direct labor cost per unit 7.65~variable factory overhead costs per unit 2.25~variable sellingand admin cost per unit .90.