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Kamon Electronics, Inc. manufactures two products, DVD Recorders and DVD Players, both on the same assembly line. The predicted sales are 10,000 DVD Recorders and

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Kamon Electronics, Inc. manufactures two products, DVD Recorders and DVD Players, both on the same assembly line. The predicted sales are 10,000 DVD Recorders and 12,500 DVD Players. The predicted costs for the year 2022 are as follows: Materials Other Variable $200,000 250,000 Fixed $500,000 800,000 Each product uses 50 percent of the materials costs. Based on manufacturing time, 60 percent of the other costs are assigned to the DVD Recorders, and 40 percent of the other costs are assigned to DVD Players. The management of Kamon Electronics desires an annual profit of $175,000. What price should Kamon Electronics charge for each DVD Recorder if management believes the Recorders should sell for 50 percent more than the DVD Players? (Round to 2 decimal places.) Select one: O a. $115.60 O b. $105.00 O c. $100.00 O d. $100.40

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