Jessup Company Expects to Incur Overhead Costs of $20,000 Per

Multiple Choice

Jessup Company expects to incur overhead costs of $20,000 per month and direct production costs of $125 per unit.The estimated production activity for the upcoming year is 1,000 units.If the company desires to earn a gross profit of $50 per unit,the sales price per unit would be which of the following amounts?

A) $175
B) $195
C) $415
D) $290