Carns Company is considering eliminating its Small Tools Division, which reported a loss for the prior year of $245,000 as shown below.

Segment Income (Loss)
Sales	$ 1,470,000
Variable costs	1,335,000
Contribution margin	135,000
Fixed costs	380,000
Income (loss)	$ (245,000)

If the Small Tools Division is dropped, all of its variable costs are avoidable, and $114,000 of its fixed costs are avoidable. The impact on Carns’s income from eliminating the Small Tools Division would be:

Galla Incorporated needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 5,000 units. Additional information is as follows:

Variable Costs per Unit		Fixed Costs (total)
Direct materials	$ 14	Overhead	$ 45,000
Direct labor	15	General and administrative	18,000
Overhead	13
General and administrative	19

Using the total cost method what price should Galla charge?