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Hoops Incorporated sells basketballs. Each basketball requires direct materials of $15.50, direct labor of $9.00, variable overhead of $10.00, and variable selling, general, and administrative
Hoops Incorporated sells basketballs. Each basketball requires direct materials of $15.50, direct labor of $9.00, variable overhead of $10.00, and variable selling, general, and administrative costs of $7.50. The company has fixed overhead of $54,000 and fixed selling, general, and administrative costs of $61,000. The company has a target profit of $53,000. It expects to produce and sell 20,000 basketballs. The selling price per unit under the variable cost method is:
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$33.60.
$42.00.
$50.40.
$58.80.
63.00.
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