Huds Inc. reports the information below on its product. The company uses absorption costing and has a target markup of \(40 \%\) of absorption cost per unit. Compute the target selling price per unit under absorption costing.

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Direct materials... Direct labor Variable overhead Fixed overhead...... ........ $100 per unit $30 per unit $8 per unit Units produced.... $600,000 per year Units sold..... Variable selling and administrative expenses... Fixed selling and administrative expenses..... $3 per unit $120,000 per year 50,000 units per year 50,000 units per year