Target costing
Ray-Dee,Inc.is considering the introduction of a new deluxe quality stereo tabletop radio.This radio will produce exceptional sound quality through new speaker technology.Market research indicates that customers would be willing to pay $400 for a radio of the quality considered.Ray-Dee requires a 30% return on sales for all its products.
Required: Compute Ray-Dee's target cost for the radio under consideration.

Question

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The Answer of Target costing
Ray-Dee,Inc.is considering the introduction of a new deluxe quality stereo tabletop radio.This radio will produce exceptional sound quality through new speaker technology.Market research indicates that customers would be willing to pay $400 for a radio of the quality considered.Ray-Dee requires a 30% return on sales for all its products.
Required: Compute Ray-Dee's target cost for the radio under consideration.

Target Costing Ray-Dee,Inc.is Considering the Introduction of a New Deluxe Quality Stereo