$7.$Carns Company is considering eliminating its Small Tools Division, which reported a loss for the prior year of $$245,000$ as shown below.

If the Small Tools Division is dropped, all of its variable costs are avoidable, and $$114,000$ of its fixed costs are avoidable. The impact on Carns$$s income from eliminating the Small Tools Division would be:$9.$Galla Incorporated needs to determine a price for a new product. Galla desires a $25\%$ markup on the total cost of the product. Galla expects to sell $5,000$ units. Additional information is as follows:

Using the total cost method what price should Galla charge?