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Waverley Water Company manufactures ecological friendly water coolers. Its primary customers are retailers. The estimated cost to make a water cooler is: Direct materials $

Waverley Water Company manufactures ecological friendly water coolers. Its primary customers are retailers. The estimated cost to make a water cooler is:

Direct materials $ 2.50 Direct labour $ 1.70 Variable overhead $ 3.05 Fixed overhead $ 3.50 Total $10.75

Variable selling costs per unit $ 2.00 Fixed administration charges $12,500

If Waverley Water Company prices its product using a markup of 250% of its variable production costs, what would the unit selling price be?

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