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Techcom is designing a new smartphone. Each unit of this new phone will require $236 of direct materials; $16 of direct labor; $28 of variable
Techcom is designing a new smartphone. Each unit of this new phone will require $236 of direct materials; $16 of direct labor; $28 of variable overhead; $24 of variable selling, general, and administrative costs; $40 of fixed overhead costs; and $16 of fixed selling, general, and administrative costs. 1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 180% of total costs. 2. The company is a price-taker and the expected selling price for this type of phone is $860 per unit. Compute the target cost per unit if the company's target profit is 60% of expected selling price. 3. 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. The company is a price-taker and the expected selling price for this type of phone is $860 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
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