14 #UNU Problem 7-40 Basic CVP Relationships (LO 7-1,7-2, 7-4) (The following information applies to the questions displayed below.] Serendipity Sound, Inc., manufactures and sells compact discs. Price and cost data are as follows: 25.00 $ Selling price per unit (package of two CDs) Variable costs per unit: Direct material Direct labor Manufacturing overhead Selling expenses Total variable costs per unit Annual fixed costs: Manufacturing overhead Selling and administrative Total fixed costs Forecasted annual sales volume (120,000 units) 10.50 5.00 3.00 1.30 19.80 $ $ 192,000 276,000 $ 468,000 $3,000,000 In the following requirements, ignore income taxes. Problem 7-40 Part 6 6. If the company's direct-labor costs do Increase by 8 percent, what selling price per unit of product must it charge to maintain the same contribution-margin ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)