Jay Company uses the total cost concept 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: 
Jay desires a profit equal to a 14% rate of 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.
(c)Determine the markup percentage for Product E.
(d)Determine the selling price of Product E.
Definitions:
Management By Objectives (MBO)
A management strategy where employees and managers define and agree on specific objectives, with performance evaluated against these objectives.
Measurable Objectives
Specific, quantifiable goals set by an organization or individual that allow for tracking progress and assessing achievement.
Manager
A person responsible for controlling or administering all or part of a company or similar organization, overseeing and directing the work of others.
Management By Objectives (MBO)
A management strategy in which employees set objectives that contribute to organizational goals, promoting alignment and engagement.
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