Problem: Miller Manufacturing, Inc. produces electronic components for television circuitry. Variable costs comprise 67% of a product's selling price. The variable costs of producing a component include the following:
Direct material $ 1.83/unit
Direct labor $ 6.72/unit
Variable factory overhead $ 0.86/unit
Vicki Miller, President, expects to produce 80,000 electronic components and incur $280,000 of fixed costs.
What is Miller Manufacturing's break-even price?