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	Fixed costs	Total
Manufacturing Costs	$414822	$460913
Selling and Administrative Expenses	107546	599187
Total	$522368	$1060100

The information on the manufacturing cost per unit of product 100BC is as follows:

100BC Product Costs:
Direct material	$11.24
Direct labor	5.03
Variable manufacturing indirect costs	4.14
Fixed manufacturing indirect costs	8.58
Total manufacturing cost	29.57
Variable selling and administrative expenses	5.62

Management has set a profit target for next year of $327,513 from the sale of the 100BC product.

REQUIRED: 

Use the full variable cost markup to determine a suggested selling price for one unit of product 100BC. Total variable cost includes manufacturing costs and selling and administrative expenses.

Answer rating: 100% (QA)

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