Bond Co.is using the target cost approach on a new product.Information gathered so far reveals: $$\begin{array} { l l }
\text { Expected annual sales } & 400,000 \text { units } \
\text { Desired profit per unit } & \$ 0.35 \
\text { Target cost } & \$ 168,000
\end{array}$$ What is the target selling price per unit?
A)$0.42
B)$0.70
C)$0.35
D)$0.77

Question

Bond Co.is using the target cost approach on a new product.Information gathered so far reveals: $$\begin{array} { l l } 
\text { Expected annual sales } & 400,000 \text { units } \
\text { Desired profit per unit } & \$ 0.35 \
\text { Target cost } & \$ 168,000
\end{array}$$ What is the target selling price per unit?
A)$0.42
B)$0.70
C)$0.35
D)$0.77

Quizplus · Accepted Answer

The Answer of Bond Co.is using the target cost approach on a new product.Information gathered so far reveals: $$\begin{array} { l l } 
\text { Expected annual sales } & 400,000 \text { units } \
\text { Desired profit per unit } & \$ 0.35 \
\text { Target cost } & \$ 168,000
\end{array}$$ What is the target selling price per unit?
A)$0.42
B)$0.70
C)$0.35
D)$0.77

Bond CoIs Using the Target Cost Approach on a New Product