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 $
Selling and Administrative Expenses $
Fixed Costs:
Manufacturing Costs $
Selling and Administrative Expenses $
The information on the manufacturing cost per unit of product BC is as follows:
BC Product Costs:
Direct material $
Direct labor$
Variable manufacturing indirect costs$
Fixed manufacturing indirect costs$
Total manufacturing cost$
Variable selling and administrative expenses$
Management has set a profit target for next year of $ from the sale of the BC product.
REQUIRED: Use the manufacturing variable cost markup to determine a suggested selling price for one unit of product BC
The response is $ Explain how the response is found.
