Printers Limited has been asked by the local university press to quote for the printing of a new book. The print run will be for 2,000 books of 400 pages each. The costing records of Printers Limited contain the following information:

• Paper is bought from a local supplier. The local supplier provides paper at a price of 2,500 sheets for £9.

• Printing ink costs £57.50 per gallon, which is sufficient to print 20,000 pages.

• Covers for each book will be bought in at a cost of 66 pence for each book.

• Finishing costs per book are 50 pence.

• Production workers are paid an hourly rate of £12.50. The costing records show that a print run of 2,000 books would require 200 hours of production labour time.

• Printers’ total production overheads for the year are £500,000 and the normal production level of the business is 50 million pages per annum.

• Printers Limited’s pricing policy is to set selling price at total absorption cost plus 25%.

Required

Calculate the price that Printers Limited should charge the local university press for the print run of 2,000 books.