he firm sets the target price of each product at $150\%$ of the product$$s total manufacturing cost. It appears that the firm was able to sell Product C at a much higher price than the target price of the product and lost money on Product B$.$ Tom Watson, CEO, wants to promote Product C much more aggressively and phase out Product B$.$ He believes that the information suggests that Product C has the greatest potential among the firm$$s three products because the actual selling price of Product C was almost $50\%$ higher than the target price, while the firm was forced to sell Product B at a price below the target price.

Both the budgeted and actual factory overhead for the current year are $$668,700.$ The actual units sold for each product also are the same as the budgeted units. The firm uses direct labor dollars to assign manufacturing overhead costs. The direct materials and direct labor costs per unit for each product are: