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Problem 1 0 - 4 A ( Algo ) Pricing using total cost, target cost, and variable cost LO P 6 Techcom is designing a

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Problem 10-4A (Algo) Pricing using total cost, target cost, and variable cost LO P6
Techcom is designing a new smartphone. Each unit of this new phone will require $235 of direct materials; $15 of direct labor; $28 of
variable overhead; $23 of variable selling, general, and administrative costs; $36 of fixed overhead costs; and $15 of fixed selling,
general, and administrative costs.
Compute the selling price per unit if the company uses the total cost method and plans a markup of 175% of total costs.
The company is a price-taker and the expected selling price for this type of phone is $850 per unit. Compute the target cost per
unit if the company's target profit is 60% of expected selling price.
Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costs.
Complete this question by entering your answers in the tabs below.
Compute the selling price per unit if the company uses the total cost method and plans a markup of 175% of total costs.
Total cost per unit
Markup per unit
Selling price per unit
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