Tesla uses the product cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing 20,000 units of Model S are as follows: Direct materials $ 45,000 Direct labor 190,000 Factory overhead 65.000 $ 300,000 Total product cost The selling and administrative expenses are $25,000. Tesla desires a profit equal to a 11% return on invested assets of $2,200,000. a a. Determine the amount of desired profit from the production and sale of Model S. 6. Determine the cost per unit for the production of 20,000 units of Model S. c. Determine the markup percentage for Model S. d. Determine the selling price of Model S. Round the markup percentage to one decimal place and other intermediate computations and final answer to two decimal places.

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