A Producer Incurred Costs of $54,000 for Labor and Materials

Multiple Choice

A producer incurred costs of $54,000 for labor and materials and $26,000 for fixed overhead expenses in a year.The firm produced 20,000 units during the year.If the producer desires a profit of $1 per unit in the coming year,what should the producer's selling price be,using average-cost pricing?

A) $3.70
B) $2.30
C) $5.00
D) $6.00
E) The amount cannot be determined from the information provided.