1. XYZ Company produces widgets. XYZ Company calculates the following costs for the production of 1 widget.

Direct materials: $250

Direct labor: $400

Variable overhead: $125

Fixed overhead: $200

Variable selling: $50

Fixed selling: $35

Assuming that XYZ uses a 25% markup on the cost of producing 1 unit, calculate the sales price per unit charged by XYZ.

a. $812.50

b. $1,325

c. $848

d. $1,218.75