Horten Sporting Goods Corporation produces two types of racquets: tennis and badminton. The company uses the same facility for both products, although the processes differ. Recently, the company switched its cost accounting system to activity-based costing. Below are the cost data prepared by Jane Price, the cost accountant, for the third quarter of 2018 (during which Horten made 70,000 tennis racquets and 30,000 badminton racquets).

**Direct Costs**
- **Tennis Racquet (TR)**
- Direct materials: $17.10 per unit
- Direct labor: $33.50 per unit

- **Badminton Racquet (BR)**
- Direct materials: $14.80 per unit
- Direct labor: $23.10 per unit

**Activity-Based Costs**

| Category | Estimated Cost | Cost Driver | Amount of Cost Driver |
|---------------|----------------|------------------------------|-------------------------------------|
| Unit level | $736,000 | Number of inspection hours | TR: 15,900 hours; BR: 7,100 hours |
| Batch level | $353,800 | Number of setups | TR: 83 setups; BR: 39 setups |
| Product level | $152,500 | Number of TV commercials | TR: 4; BR: 1 |
| Facility level| $630,000 | Number of machine hours | TR: 30,600 hours; BR: 39,400 hours |
| **Total** | $1,872,300 | | |

Inspectors are paid based on the actual hours worked, which depends on the number of racquets inspected. Engineers who set up equipment are paid monthly salaries. TV commercial fees are paid at the beginning of the quarter. Facility-level costs include depreciation of all production equipment.

**Required**

a. Compute the cost per unit for each product.
b. If management wants to price badminton racquets 30 percent above cost, what price should the company set?