Question 4 Stent Corporation needs to set a target price for its newly designed product EverReady. The following data relate to this new product. Per Total Unit Direct materials $ 24 Direct labor $ 39 Variable manufacturing overhead $13 Fixed manufacturing overhead $ 1,944,000 Variable selling and administrative expenses $4 Fixed selling and administrative expenses $ 1,251,450 The costs shown above are based on a budgeted volume of 81,000 units produced and sold each year. Stent uses cost-plus pricing methods to set its target selling price Because some managers prefer absorption cost pricing and others prefer variable-cost pricing, the accounting department provides information under both approaches using a markup of 50% on absorption cost and a markup of 80% on variable cost. Compute the target price for one unit of EverReady using absorption-cost pricing, Target price $ 120 Compute the target price for one unit of EverReady using variable-cost pricing. Target price $