Compute the target price for one unit of EverReady using variable-cost pricing.

4 BACK NEA PRINTER VERSION nment CALCULATOR Problem 8-7A (Part Level Submission) Stent Corporation needs to set a target price for its newly designed product EverReady. The following data relate to this new product. Per Unit Total $ 20 $ 40 $ 10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 1,600,000 $ 5 $1,250,400 The costs shown above are based on a budgeted volume of 80,000 units produced and sold each year. Stent uses cost-plus pricing methods to set its target selling price. Because some managers prefer absorption-cost pricing and others prefer variable-cost pricing, the accounting department provides information under both approaches using a markup of 50% on absorption cost and a markup of 80% on variable cost