Expected annually sales over the next eight years 20,000 units .

Production Variable costs Per unit

Direct materials cost $ 13.75

Direct labour cost 6.75

Variable overhead cost 8.10

Variable selling and administrative expenses 5.00

Total variable cost $ 33.60

Fixed Cost

• Annual fixed manufacturing overhead is expected to be $200,000.
• Fixed selling and administrative expenses are set at $150,000.

Quality costs

For the first year of operations $150,000

For the remainder of the life of the product $50,000 per year .

Product development costs are $1,500,000.

What will the selling price be if the company expects to set the price at a 23% markup on the full life cycle cost (rounded to the nearest cent)?