1. **Problem Statement:** Determine the desired profit per unit and the selling price per unit to cover all costs and provide the desired profit. 2. **Given Data:** - Fixed costs: - Selling & administrative expenses = 580000 - Factory overhead = 2452000 - Variable costs per unit: - Selling & administrative expenses = 72 - Direct labour = 85 - Direct material = 160 - Factory overhead = 134 - Desired profit per unit (given as B) = 8 3. **Step 1: Calculate total fixed costs** $$\text{Total fixed costs} = 580000 + 2452000 = 3032000$$ 4. **Step 2: Calculate total variable cost per unit** $$\text{Variable cost per unit} = 72 + 85 + 160 + 134 = 451$$ 5. **Step 3: Calculate desired profit per unit** Given as $B = 8$ 6. **Step 4: Calculate selling price per unit** Selling price per unit must cover variable cost, fixed cost per unit, and desired profit. Assuming production quantity $Q$ is not given explicitly, but from part b) 60000 units are required, so use $Q = 60000$ units. Fixed cost per unit: $$\frac{3032000}{60000} = 50.5333$$ Selling price per unit: $$\text{Selling price} = \text{Variable cost per unit} + \text{Fixed cost per unit} + \text{Desired profit}$$ $$= 451 + 50.5333 + 8 = 509.5333$$ 7. **Final answers:** - Desired profit per unit = $8$ - Selling price per unit = $509.53$ (rounded to two decimals)