Selling price per unit (package of 2 CDs)......................................

$25.00

Variable costs per unit:

Direct material...............................................................................................................

$6.00

Direct labor......................................................................................................................

$5.00

Artist's royalties..............................................................................................................

$4.50

Manufacturing overhead..........................................................................................

$3.00

Selling expenses............................................................................................................

$1.30

Total variable costs per unit............................................................

$19.80

Annual fixed costs:

Manufacturing overhead..........................................................................................

$192,000

Selling and administrative.......................................................................................

$276,000

Total fixed costs................................................................................

$468,000

Forecasted annual sales volume (120,000 units).........................

$3,000,000

If the company's direct-labor costs do increase by 8%, what selling price per unit of product must it charge to maintain the same contribution margin ratio?