The Brandon Company prices its products using a 50% profit margin on the total cost of production to cover selling and administrative expenses and provide a reasonable return on investment.

                                                                                   Cost Per Unit

Direct materials                                                                $34

direct labor                                                                       20

Variable overall production load                                     27

Variable selling and administrative expenses                10

Fixed production overheads total $200,000 annually. Fixed selling and administrative expenses are $100,000 per year. The average number of units sold per year is 10,000.

Necessary

Estimate the NORMAL SALES PRICE using the functional cost approach to price these data and products. Note: The profit margin will be 50% of the selling price.