Exercise $19-16($Static$)$ Target pricing LO P$3$

Huds Incorporated reports the information below on its product. The company uses absorption costing and has a target markup of $40\%$ of absorption cost per unit.

Direct materials

Direct labor

variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

Units produced

Units sold

$$100$ per unit

$$30$ per unit

$$8$ per unit

$$600,000$ per year

$ $120,000$ per unit

$$120,000$ per year

$50,000$ units per year

$50,000$ units per year

Compute the target selling price per unit under absorption costing.

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