Using the cost plus formula shown below and the information listed, please compute an appropriate sales price for these new sunglasses.

You work for a company that manufactures sunglasses. Your company uses the cost plus pricing formula to set the price on new styles. The brand is well known and all other styles sell well using this method. Here is the information you have gathered:

• Frames - $9.50
• Lenses - $15
• DL - $10
• VOH (Variable Overhead) - $0.50
• Variable S & A (for advertising and commissions) - $1
• Fixed Manufacturing Overhead - $10,000
• Fixed S & A Expenses - $10,000
• $500,000 for a new lens machine for this special new style (it can be used for new styles in the future)
• Your company requires a 25% rate of return on its investments.
• You expect to sell 20,000 of this style this year.