XYZ Corporation needs to set a target price for its newly designed product The Marquis. The following data relate to this new product: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit Total $20 40 10 $1,400,000 5 1,120,000 The costs above are based on a budgeted volume of 80,000 units produced and sold each year. XYZ uses cost-plus pricing to set its target selling price. The absorption-cost approach and the variable-cost approach information is provided by the accounting department using a markup of 50% on the manufacturing cost per unit and a markup of 75% on the variable cost. Calculate target price using absorption-cost and variable-cost approaches. Required a. Calculate the target price for one unit of The Marquis using the absorption-cost approach. b. Calculate the target price for one unit of The Marquis using the variable-cost approach