QS 23-18 (Algo) Pricing using variableGoSnow sells snowboards. Each snowboard requires direct materials of $134, direct labor of $47, variable overhead of $57, andvariable selling, general, and administrative costs of $22. The company has fixed overhead costs of $277,000 and fixed selling,general, and administrative costs of $347,000. The company has a target profit of $416,000. It expects to produce and sell 10,000snowboards.Compute the selling price per unit using the variable Cost method. (Round your intermediate calculations and final answer to nearestwhole dollar amounts.)Selling price$342 per unit

VARIABLE COST METHOD Variable Cost Method is Of the Important Managerial Accounting Cost Concept. Under Variable Costing System, Contribution Margin is Computed by Deducting Variable Cost per Unit from Selling Price Per unit. Net Income is Computed By deducting Fixed Cost from Total Contribution Margin. Target Profit is Computed :— Units Sold to Acheive Target Profit = (Fixed Cost + Target Profit) ÷ (Selling Price - VC Per Unit)Working Note #1 :— Computation of Variable Cost Per Unit. = Direct Material Cost + Direct Labour + Variable OH + Variable Selling, General & Administrative Cost = $134 + $47 + $57 + $22 = $260 Working Note #2 :— Computation of Total Fixed Cost. = Fixed OH Cost + Fixed Selling, General & Administrative Cost = $277,000 + $347,000 = $624,000 Working Note #3 :— Computation of Selling Price Per unit. Units Sold to Acheive Target Profit = (Fixed Cost + Target Profit) ÷ (Selling Price - VC Per Unit) 10,000 Units = ($624,000 + $416,000) ÷ (SP - $260) 10,000 = $1,040,000 ÷ (SP - $260) 10,000 SP - $2,600,000 = $1,040,000 10,000 SP = $1,040,000 + $2,600,000 10,000 SP = $3,640,000 Selling Price = $3,640,000 ÷ 10,000 Selling Price Per Unit = $364 REQUIREMENT# :— FINAL ANSWER The Selling Price Per unit is $364 Selling $364 Per Unit