Normal Selling Price Chojna Lighting Supply manufactures desktop and ceiling-mounted light fixtures. The company is seeking to come up with a reasonable price for its desktop executive model.

Production costs for each unit follow:

Required:
Calculate the estimated normal selling price.

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Direct materials Direct labor Direct labor rate Variable manufacturing overhead Variable selling and administrative costs Fixed overhead (direct) .... Markup of selling price to cover indirect overhead and expected profit $7 per unit 1.5 hours per unit $4 per hour $3 per labor hour $2 per unit $3 per unit 40%