Exercise 19-11 Absorption costing and product pricing LO P4 Help Save & EX Sirhuds Inc., a maker of smartwatches, reports the information below on its product. The company uses absorption costing and has a target markup of 40% of absorption cost per unit Check Direct materials cost Direct Labor cost Variable overhead cost Pixed overhead cost Variable selling and administrative expenses Fixed selling and administrative expenses Expected production (and sales) 100 per unit 30 per unit per unit $600,000 per year $ per unit $120,000 per year 50,000 units per year Compute the target selling price per unit under absorption costing. Por unit Direct materials Direct labor Variable overhead Fixed overhead Total product cost using absorption costing Target profit Target selling price Exercise 19-13 Variable cost analysis for a special order LO A1 Grand Garden is a luxury hotel with 150 suites. Its regular suite rate is $250 per night per suite. The hotel's cost per night is $140 per suite and consists of the following 30 Variable direct labor and materials cost Fixed cost ($6,022,500/150 suites) + 365 days) Total cost per night per suite 110 The hotel manager received an offer to hold the local Bikers' Club annual meeting at the hotel in March, which is the hotel's low season with an occupancy rate of under 50%. The Bikers' Club would reserve 50 suites for three nights if the hotel could offer a 50% discount, or a rate of $125 per night. The hotel manager is inclined to reject the offer because the cost per suite per night is $140. Required: Prepare an analysis of this offer for the hotel manager Contribution margin analysis