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Sirhuds Inc., a maker of smartwatches, reports the information below on its product. The company uses absorption costing and has a target markup of 40%
Sirhuds Inc., a maker of smartwatches, 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 | $ | 110 | per unit |
Direct labor cost | $ | 40 | per unit |
Variable overhead cost | $ | 18 | per unit |
Fixed overhead cost | $ | 240,000 | per year |
Variable selling and administrative expenses | $ | 8 | per unit |
Fixed selling and administrative expenses | $ | 145,000 | per year |
Expected production (and sales) | 40,000 | 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.)
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