Kircher, Inc., manufactures a product with the following costs:

	Per Unit				Per Year
Direct materials	$	27.90
Direct labor	$	15.40
Variable manufacturing overhead	$	3.60
Fixed manufacturing overhead					$	1,730,400
Variable selling and administrative expenses	$	3.50
Fixed selling and administrative expenses					$	1,713,600

The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 84,000 units per year. The company has invested $328,000 in this product and expects a return on investment of 25%. The selling price based on the absorption costing approach would be closest to: (Do not round the intermediate calculations.)

Noreen rechecks 2017-04-04

a. $91.96

b. $92.37

c. $73.35

d. $113.73