National Corporation needs to set a target price for its newly designed product M14–M16. The following data relate to this new product. Per Unit Total Direct materials $24 Direct labor $46 Variable manufacturing overhead $13 Fixed manufacturing overhead $1,458,000 Variable selling and administrative expenses $ 6 Fixed selling and administrative expenses $ 891,000 These costs are based on a budgeted volume of 81,000 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 38%.