Burtis Company produces a number of products. In 20×2 the selling price of product A, whose sales are normally 10,000 units per year, was calculated as follows:
In 20×3 the company estimates that direct material cost and direct labor cost will increase by 12 percent. It also estimates that overhead cost will increase by a total of $6,000 and that selling and administrative cost and sales volume will remain unchanged.
Required:
What is the normal selling price for product A in 20×3?
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