Diedrich Corporation makes a product with the following costs: Per Unit Per Year Direct materials $ 18.10 Direct labor $ 11.40 Variable manufacturing overhead $ 3.90 Fixed manufacturing overhead $ 752,100 Variable selling and administrative expenses $ 2.00 Fixed selling and administrative expenses $ 790,000 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 69,000 units per