(Appendix 12A)Cost Data Relating to the Single Product Produced by the Jones

Multiple Choice

(Appendix 12A) Cost data relating to the single product produced by the Jones Company are given below: $\begin{array}{lccc}& \underline { \text { Per Unit } } & \underline { \text { Total per year} } \\\text { Direct materials } & \$ 10 & \\\text { Direct labour } & 6& \\\text { Variable manufacturing overhead } & 3 & \\\text { Fixed manufacturing overhead. } & & \$ 140,000 \\\text { Variable selling, general, and } & & \\\text { administrative expense } & 1 & \\\text { Fixed selling, general, and } & & \\\text { administrative expense } & - & \$ 180,000\end{array}$
The Jones Company uses the absorption costing approach with a desired markup of 60%.If the company plans to produce and sell 20,000 units each year,what would be the target selling price per unit?

A) $32.00.
B) $36.00.
C) $41.60.
D) $43.20.