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Sirhuds Inc., a maker of smart watches, reports the information below on its product. The company uses absorption costing and has a target markup of

Sirhuds Inc., a maker of smart watches, reports the information below on its product. The company uses absorption costing and has a target markup of 40% of absorption cost per unit.

Direct materials cost $ 136 per unit
Direct labor cost $ 66 per unit
Variable overhead cost $ 44 per unit
Fixed overhead cost $ 175,000 per year
Variable selling and administrative expenses $ 21 per unit
Fixed selling and administrative expenses $ 210,000 per year
Expected production (and sales) 14,000 units per year

Compute the target selling price per unit under absorption costing. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Direct Materials: Direct Labor: Variable Overhead: Fixed Overhead: Total Production Costs using absorption costing: Target Profit: Target Selling Price:

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