Problem $10-4$A $($Algo$)$ Pricing using total cost, target cost, and variable cost LO P$6$

Techcom is designing a new smartphone. Each unit of this new phone will require $$235$ of direct materials; $$15$ of direct labor; $$28$ of

variable overhead; $$23$ of variable selling, general, and administrative costs; $$36$ of fixed overhead costs; and $$15$ of fixed selling,

general, and administrative costs.

Compute the selling price per unit if the company uses the total cost method and plans a markup of $175\%$ of total costs.

The company is a price$-$taker and the expected selling price for this type of phone is $$850$ per unit. Compute the target cost per

unit if the company's target profit is $60\%$ of expected selling price.

Compute the selling price per unit if the company uses the variable cost method and plans a markup of $200\%$ of variable costs.

Complete this question by entering your answers in the tabs below.

Compute the selling price per unit if the company uses the total cost method and plans a markup of $175\%$ of total costs.

Total cost per unit

Markup per unit

Selling price per unit