Galla Inc. 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 product cost per unit$15 Variable administrative cost per unit 10 Total fixed overhead 45,000 Total fixed administrative 18,000 Using the total cost method what price should Galla charge?
A. $56
B. $62
C. $47
D. $30
E. $42
Answer: C
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