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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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.
Â
| Â | Â | Â | Â |
| Direct materials cost | $ | 102 | per unit |
| Direct labor cost | $ | 32 | per unit |
| Variable overhead cost | $ | 10 | per unit |
| Fixed overhead cost | $ | 192,000 | per year |
| Variable selling and administrative expenses | $ | 4 | per unit |
| Fixed selling and administrative expenses | $ | 125,000 | per year |
| Expected production (and sales) | Â | 48,000 | units per year |
Â
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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