Chapter 19 Exercise Saved Help Save & Exit Submit Check my work 5 Sirhuds Inc., a maker of smartwatches, reports the information below on its product. The company uses absorption costing and has a target markup of 40% of absorption cost per unit. 0.83 points Direct materials cost Direct labor cost Variable overhead cost Fixed overhead cost Variable selling and administrative expenses Fixed selling and administrative expenses Expected production (and sales) $ 138 per unit $ 68 per unit $ 46 per unit $156,000 per year $ 22 per unit $215,000 per year 12,000 units per year eBook Hint Print References Compute the target selling price per unit under absorption costing. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Per unit Direct materials Direct labor Variable overhead Fixed overhead Total product cost using absorption costing Target profit Target selling price MC Nevt Chapter 19 Exercise Saved Help Save & Exit Submit Check my work 6 Grand Garden is a luxury hotel with 165 suites. Its regular suite rate is $210 per night per suite. The hotel's cost per night is $135 per suite and consists of the following. 0.85 points Variable direct labor and materials cost Fixed cost [($5,970,000/165 suites) + 365 days) Total cost per night per suite $36 99 $ 135 eBook Print References The hotel manager receives an offer to hold the local Bikers' Club annual meeting at the hotel in March, which is the hotel's low season with an occupancy rate of under 60%. The Bikers' Club would reserve 45 suites for three nights if the hotel could offer a 60% discount, or a rate of $84 per night. The hotel manager is inclined to reject the offer because the cost per suite per night is $135. Prepare an analysis of this offer for the hotel manager. Should the offer from the Bikers' Club should be accepted or rejected? What is the contribution margin from accepting the offer? Contribution margin analysis Mc Graw Prev 6 of 6 !! Next