Reference no: EM13603044

Hansen Corporation needs to set a target price for its newly designed product EverReady. The following data relate to this new product. Per Unit Total Direct materials $18.00 Direct labor $44.00 Variable manufacturing overhead $11.00 Fixed manufacturing overhead $1,660,000 Variable selling and administrative expenses $7.00 Fixed selling and administrative expenses $1,044,140 The costs shown above are based on a budgeted volume of 83,000 units produced and sold each year. Hansen uses cost-plus pricing methods to set its target selling price. Because some managers prefer absorption-cost pricing and others prefer variable-cost pricing, the department provides information under both approaches using a markup of 48% on absorption cost and a markup of 72.05% on variable cost. Compute the target price for one unit of EverReady using absorption-cost pricing. $? Compute the target price for one unit of EverReady using variable-cost pricing. $?