Dickson Corporation makes a product with the following costs:

	Per Unit	Per Year
Direct materials	$18.20
Direct labor	$22.30
Variable manufacturing overhead	$2.90
Fixed manufacturing overhead		$1,296,000
Variable selling and administrative expenses	$1.10
Fixed selling and administrative expenses		$1,104,000

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 60,000 units per year. The company has invested $320,000 in this product and expects a return on investment of 15%. Direct labor is a variable cost in this company. The selling price based on the absorption costing approach is closest to:

		$85.28
		$84.50
		$110.89
		$56.95