19.

Kircher, Inc., manufactures a product with the following costs:

	Per Unit				Per Year
Direct materials	$	26.90
Direct labor	$	14.90
Variable manufacturing overhead	$	3.10
Fixed manufacturing overhead					$	1,469,400
Variable selling and administrative expenses	$	3.00
Fixed selling and administrative expenses					$	1,453,600

The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 79,000 units per year. The company has invested $1,066,000 in this product and expects a return on investment of 20%. The selling price based on the absorption costing approach would be closest to: (Do not round the intermediate calculations.)

Noreen rechecks 2017-04-04

$68.58

$108.96

$87.19

$87.60