Breaky Company is launching a new cleaning product for ceramic vases. The company invests $2,900,000 in operating assets, such as production equipment, and plans to produce and sell 150,000 units per year. Breaky wants to make a return on investment of 35% each year. Breaky needs to know what price to charge for this product.
Use the absorption costing approach to determine the markup necessary to make the desired return on investment. Round your answer to two decimals places. Cost information is provided below:
- Per Unit Total
- Direct Materials $15.00
- Direct Labor $9.50
- Variable Manufacturing Overhead $3.00
- Fixed Manufacturing Overhead $300,000
- Variable Selling and Admin. Expense $0.70
- Fixed Selling and Admin. Expense $80,000
- Selling price= $