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:

Variable Costs per UnitFixed Costs (total)Direct materials$ 5Overhead$ 45,000Direct labor6General and administrative18,000Overhead4General and administrative10

Using the total cost method what price should Galla charge?

a. $37.60

b. $35.75

c. $42.50

d. $47.00

e. $31.25

Carlys Clips charges for their grooming services based on the following:

Direct labor rate$ 60per hourMaterials markup30%

Using time and materials pricing, what is the total price for a job requiring 3 direct labor hours and $50 of materials?

a. $250.

b. $230.

c. $180.

d. $195.

e. $245.