Chojna Lighting Supply manufactures desktop and ceiling-mounted luxury light fixtures. The company wants to come up with a reasonable price for its desktop executive model. Production costs for that unit follow:

Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $90 per unit

Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 hours per unit

Direct labor rate (includes the cost of fringe benefits). . . . . . . . . . . . . . . . . . $40 per hour

Variable manufacturing overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20 per labor hour

Variable selling and administrative costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20 per unit

Fixed overhead (direct) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40 per unit

Markup as a percentage of selling price to cover indirect

overhead and expected profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40%

Required:

Calculate the estimated normal selling price.