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ABC, Inc. is a small company that produces a wide variety of computer devices. The...

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Accounting

ABC, Inc. is a small company that produces a wide variety of computer devices. The variable and fixed costs expected by ABC, Inc. for the next year are as follows:
Variable costs:
Manufacturing Costs= $5,191,074
Selling and Administrative Expenses= $153,241
Fixed Costs:
Manufacturing Costs= $656,749
Selling and Administrative Expenses= $853,773
The information on the manufacturing cost per unit of product 100BC is as follows:
100BC Product Costs:
Direct material= $10.34
Direct labor=$4.9
Variable manufacturing indirect costs=$4.08
Fixed manufacturing indirect costs=$7.89
Total manufacturing cost=$27.2
Variable selling and administrative expenses=$5.17
Management has set a profit target for next year of $381,738 from the sale of the 100BC product.
REQUIRED: Use the manufacturing variable cost markup to determine a suggested selling price for one unit of product 100BC.
The response is $83.73. Explain how the response is found.

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