Please explain your answer in a bit of detail, as I'm trying to learn how to do the probelm as well as simply get the answer.

Exercise 21

Skyhigh Company is in the process of setting a selling price for its newest model stunt kite, the Looper. The controller of Skyhigh estimates variable cost per unit for the new model to be as follows:

Direct materials		$15
Direct labor		8
Variable manufacturing overhead		4
Variable selling and administrative expenses		5
		$32

In addition, Skyhigh anticipates incurring the following fixed cost per unit at a budgeted sales volume of 20,000 units:

Total Costs