Exercise $4-11$B How fixed cost allocation affects a pricing decision

Monarch Manufacturing Company expects to make $72,000$ travel sewing kits during Year $3.$ In January, the company made $1,800$ kits. Materials and labor costs for January were $$9,000$ and $$11,250,$ respectively. In February, Monarch produced $2,200$ kits. Material and labor costs for February were $$11,000$ and $$13,750,$ respectively. The company paid $$180,000$ for annual factory insurance on January $10,$ Year $3.$ Ignore other manufacturing overhead costs.

Required

Assuming that Monarch 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?