Jessup Company Expects to Incur Overhead Costs of $12,000 Per

Multiple Choice

Jessup Company expects to incur overhead costs of $12,000 per month and direct production costs of $138 per unit. The estimated production activity for the upcoming year is 1,200 units. If the company desires to earn a gross profit of $63 per unit, the sales price per unit would be which of the following amounts?

A) $209
B) $201
C) $321
D) $143