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Quick Connect manufactures high-tech cell phones. Quick Connect has a policy of adding a 15% markup to full costs and currently has excess capacity. The

Quick Connect manufactures high-tech cell phones. Quick Connect has a policy of adding a 15% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month:

Output units 1,500 phones

Machine-hours 1,100 hours

Direct manufacturing labor-hours 1,200 hours

Direct materials per unit $24

Direct manufacturing labor per hour $9

Variable manufacturing overhead costs $213,000

Fixed manufacturing overhead costs $127,000

Product and process design costs $143,700

Marketing and distribution costs $154,345

For long-run pricing of the cell phones, what price will most likely be used by Quick Connect?

A) $188.50

B) $31.20

C) $186.70

D) $173.20

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