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 Unit		Fixed Costs (total)
Direct materials	$ 21	Overhead	$ 45,000
Direct labor	22	General and administrative	18,000
Overhead	20
General and administrative	26

Using the total cost method what price should Galla charge?

Multiple Choice

$111.25

$127.00

$122.50

$115.75

$101.60