A company uses absorption costing and has a target mark up of 40% of absorption...
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Accounting
A company uses absorption costing and has a target mark up of 40% of absorption cost per unit. Compute the target selling price per unit under absorption costing.
Direct materials cost..............100 per unit
Direct labor cost....................30 per unit
Variable overhead costs..........8 per unit
fixed overhead costs.............600,000 per year
variable selling and admin expenses......3 per unit
Fixed selling and admin expenses......120,000 per year
expected production and sales..............50,000 units per year
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