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Hoops Incorporated sells basketballs. Each basketball requires direct materials of $19, direct labor of $12, the variable overhead of $14, and variable selling, general, and
Hoops Incorporated sells basketballs. Each basketball requires direct materials of $19, direct labor of $12, the variable overhead of $14, and variable selling, general, and administrative costs of $11. The company has a fixed overhead of $71,500 and fixed selling, general, and administrative costs of $78,500. The company has a target profit of $74,000. It expects to produce and sell 20,000 basketballs. The selling price per unit under the variable cost method is: A) $44.80. B) $56.00. C) $67.20. D) $78.40. E) 84.00.
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