A expense is $21,300, and fixed costs are $116,900. Variable costs are $25.89 per unit with 20,000 units expected to be sold. The tax rate is 34%. Fixed assets total $759,500 and are being depreciated straight-line to zero over seven years. What is the selling price per unit given this information?
1. $40.26
2. $40.67
3. $41.32
4. $42.78
5. None of the above.
Correct answer _____________________________