Refer to PE 22-12. Assume that Brett’s Guitars prices its products using a 30% markup on total manufacturing cost to cover selling and administrative expenses and to provide a reasonable return on investment. Using the data given in PE 22-12 and the functional cost approach to pricing products, estimate the normal selling price. Note: The markup will end up being 30% of the selling price.

Data from PE 22-12

                                                                                                                 Cost per Unit
Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10
Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... . . . . . . 17
Variable manufacturing overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Variable selling and administrative expenses . . . . . . . . . . . . . . . . . . .. . . . . . . . 8