Alway Candy Corporation is implementing a target costing approach for its latest new product,the "Big Glob" candy bar.The following information relates to the Big Glob:
Based on this information,what is Alway's target selling price per bar for the Big Glob?
A) $0.70
B) $0.72
C) $0.75
D) $0.80

Question

Alway Candy Corporation is implementing a target costing approach for its latest new product,the "Big Glob" candy bar.The following information relates to the Big Glob:
 Based on this information,what is Alway's target selling price per bar for the Big Glob?
A) $0.70 
B) $0.72 
C) $0.75 
D) $0.80

Quizplus · Accepted Answer

11ea7761_1643_dadc_81a5_ab360afd7fe7_TB2580_00 $0.60 per unit = (200,000X - $20,000) ÷ 200,000 units
(200,000X - $20,000) = $0.60 per unit × 200,000 units
200,000X - $20,000 = $120,000
200,000X = $120,000 + $20,000
200,000X = $140,000
X = $140,000 ÷ 200,000
X = $0.70

Alway Candy Corporation Is Implementing a Target Costing Approach for Its