Answered: Jessup Company expects to incur… | bartleby

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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

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