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Jay Company uses the total cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 38,400 units of Product E are as follows:

Variable costs per unit:
Direct materials		$ 4.70
Direct labor		2.50
Factory overhead		1.90
Selling and administrative expenses		2.60
Total		$11.70
Fixed costs:
Factory overhead		$80,000
Selling and administrative expenses		14,000

Jay desires a profit equal to a 14% return on invested assets of $640,000.

Jay Company uses the total cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 38,400 units of Product E are as follows: Variable costs per unit: Direct materials $ 4.70 Direct labor 2.50 Factory overhead 1.90 Selling and administrative expenses 2.60 Total $11.70 Fixed costs: Factory overhead $80,000 Selling and administrative expenses 14.000 Jay desires a profit equal to a 14% return on invested assets of $640,000. a. Determine the amount of desired profit from the production and sale of Product E. b. Determine the total costs and the cost amount per unit for the production and sale of 38,400 units of Product E. Round Cost amount per unit to two decimal places. Total cost S Cost amount per unit C. Determine the markup percentage for Product E. Round your answer to one decimal place. d. Determine the selling price of Product E. Round your answer to two decimal places. per unit

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