How fixed cost allocation affects a pricing decision Neumann Manufacturing Company expects to make 30,000 travel sewing kits during 2012. In January, the company made 1,800 kits. Materials and labor costs for January were $7,200 and $9,000, respectively. In February, Neumann produced 2,200 kits. Material and labor costs for February were $8,800 and $11,000, respectively. The company paid $69,000 for annual factory insurance on January 10, 2012. Ignore other manufacturing overhead costs. 

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Assuming that Neumann desires to sell its sewing kits for cost plus 20 percent of cost, what price should it charge for the kits produced in January and February?