Hoops Incorporated sells basketballs. Each basketball requires direct materials of $18.50, direct labor of $12.00, variable overhead of $13.00, and variable selling, general, and administrative costs of $10.50. The company has fixed overhead of $69,000 and fixed selling, general, and administrative costs of $76,000. The company has a target profit of $71,000. It expects to produce and sell 20,000 basketballs. The selling price per unit under the variable cost method is:

Multiple Choice

$43.20.

$54.00.

$64.80.

$75.60.