Jessup Company expects to incur overhead costs of $20,000 per month and direct production costs of $125

Question:

Jessup Company expects to incur overhead costs of $20,000 per month and direct production costs of $125 per unit. The estimated production activity for the upcoming year is 1,000 units. If the company desires to earn a gross profit of $50 per unit, the sales price per unit would be which of the following amounts?
Question 9 options:
1) $175
2) $195
3) $415
4) $290