Lodholz Corporation would like to use target costing for a new product that is under consideration. At a selling price of $93 per unit, management projects sales of 10,000 units. The new product would require an investment of $900,000. The desired return on investment is 17%.Required:Determine the target cost per unit for the new product.

Question

Quizplus · Accepted Answer

The Answer of Lodholz Corporation would like to use target costing for a new product that is under consideration. At a selling price of $93 per unit, management projects sales of 10,000 units. The new product would require an investment of $900,000. The desired return on investment is 17%.Required:Determine the target cost per unit for the new product.

Lodholz Corporation Would Like to Use Target Costing for a New