Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000.
- Fixed factory overhead cost $38,500
- Fixed selling and administrative costs 7,500
- Variable direct materials cost per unit 4.60
- Variable direct labor cost per unit 1.88
- Variable factory overhead cost per unit 1.13
- Variable selling and administrative cost per unit 4.50
The dollar amount of desired profit from the production and sale of the company's product is: