A company uses absorption costing and has a target mark up of 40% of absorption cost per unit. Compute the target selling price per unit under absorption costing.

Direct materials cost..............100 per unit

Direct labor cost....................30 per unit

Variable overhead costs..........8 per unit

fixed overhead costs.............600,000 per year

variable selling and admin expenses......3 per unit

Fixed selling and admin expenses......120,000 per year

expected production and sales..............50,000 units per year