Problem 21-07A a-b Crane Corporation needs to set a target price for its newly designed product EverReady. The following data relate to this new product. Per Unit $15 $35 $10 Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses 1,500,000 10 Fixed selling and administrative expenses $ 900,000 The costs shown above are based on a budgeted volume of 75,000 units produced and sold each year. Crane uses cost-plus pricing methods to set its target selling price. Because some managers preter absorption cost pricing and others preter variable-cost pricing he accounting department prov es norma on under both approaches using a mark po 0 % on a sor cost and a markup of 90% on variable cost. Compute the target price for one unit of EverReady using absorption-cost pricing. Target price