Question - 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 $ 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) 48,000 units per year
Compute the target selling price per unit under absorption costing.