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	$	106	per unit
Direct labor cost	$	36	per unit
Variable overhead cost	$	14	per unit
Fixed overhead cost	$	220,000	per year
Variable selling and administrative expenses	$	6	per unit
Fixed selling and administrative expenses	$	135,000	per year
Expected production (and sales)		44,000	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.)

	Per unit
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total product cost using absorption costing	$0.00
Target profit
Target selling price	$0.00

Jacquie Inc. reports the following annual cost data for its single product.

Normal production and sales level		71,000	units
Sales price	$	57.10	per unit
Direct materials	$	10.10	per unit
Direct labor	$	7.60	per unit
Variable overhead	$	12.10	per unit
Fixed overhead	$	1,086,300	in total

Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal place.)

	Production volume
Cost of goods sold:	71,000 units	102,000 units
Cost of goods sold per unit
Number of units sold
Total cost of goods sold
Jacquie Inc.
Income statement through gross margin
	Sales volume
	71,000 units	71,000 units
If Jacquie increases its production to 102,000 units, while sales remain at the current 71,000 unit level, by how much would the companys gross margin increase or decrease under absorption costing? Assume the company has idle capacity to double current production.
Number of units sold
Change in fixed overhead cost per unit
Change in cost of goods sold:	$0