Wasson Widget Company is contemplating the production and sale of a new widget. Projected sales are $300,000 (or 75,000 units) and desired profit is $36,000. What is the target cost per unit?
A) $4.00
B) $3.52
C) $4.48
D) $4.80

Question

Quizplus · Accepted Answer

To find the target cost per unit, subtract the desired profit from the projected sales and then divide by the number of units. ($300,000 - $36,000) / 75,000 units = $3.52 per unit.

Wasson Widget Company Is Contemplating the Production and Sale of a New