Problem 10-4A (Algo) Pricing using total cost, target cost, and variable cost LO P6

Techcom is designing a new smartphone. Each unit of this new phone will require $240 of direct materials; $20 of direct labor; $33 of variable overhead; $28 of variable selling, general, and administrative costs; $44 of fixed overhead costs; and $20 of fixed selling, general, and administrative costs.

1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 180% of total costs.
2. The company is a price-taker and the expected selling price for this type of phone is $900 per unit. Compute the target cost per unit if the companys target profit is 60% of expected selling price.
3. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costs.
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Compute the selling price per unit if the company uses the total cost method and plans a markup of 180% of total costs. Complete this question by entering your answers in the tabs below. The company is a price-taker and the expected selling price for this type of phone is $900 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