Sirhuds Inc., a maker of smart watches, reports the information below on its product. The company uses absorption costing and has a target markup of 40% of absorption cost per unit. Compute the target selling price per unit under absorption costing.

Direct Materials Cost.........................................$100 per unit

Direct Labor Cost..............................................$30 per unit

Variable Overhead Cost......................................$8 per unit

Fixed Overhead Cost..........................................$600,000 per year

Variable selling and administrative expenses........$3 per unit

Fixed selling and administrative expenses...........$120,000 per year

Expected production (and sales).........................50,000 units per year