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

	Per Unit			Per Year
Direct materials	$	26.60
Direct labor	$	15.60
Variable manufacturing overhead	$	3.80
Fixed manufacturing overhead				$	1,597,400
Variable selling and administrative expenses	$	3.70
Fixed selling and administrative expenses				$	1,565,500

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 98,000 units per year.

The company has invested $390,000 in this product and expects a return on investment of 16%.

The selling price based on the absorption costing approach would be closest to: (Do not round intermediate calculations.)