Linwood Company recently began production of a new navigation device, which required a capital investment of $660,000. Linwood is currently considering establishing a selling price for this new device that will ensure a 25% return on the capital investment. The engineering and the sales department compiled the following estimates for producing and selling 77.000 devices
Per Unit Total (77,000 units)
Direct Materials
$12
Direct Labor
$26
Variable Manufacturing Overhead
514
Selling and Administrative Expenses
$17
Fixed Manufacturing Overhead
$223.000
General and Administrative Expenses
$73,000
1080-
Required
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Bound all answers to 2 decimal pleSEL