"P87B Zelmer Corpora The following data relate to this new product. Compute the target price using absorption-cost and tion needs to set a target price for its newly designed product QB-14. variable-cost pricing. (LO 6), AP Total Per Unit $50 $30 $13 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $8,000,000 $ 7 $2,000,000 The costs above are based on a budgeted volume of 250,000 units produced and sold each year: Zelmer uses cost-plus pricing imethods to set its target selling price. Because some managers prefer absorption-cost pricing and others prefer variable-cost pricing, the ac- counting department provides information under both approaches using a markup of 60% on unit manufacturing cost and a markup of 100% on variable cost. (a) Markup $75 (b) Markup 5100 Instructions (a) Compute the target price for one unit of QB-14 using absorption-cost pricing. (b) Compute the target price for one unit of QB-14 using variable-cost pricing