Management of Thebeau,Inc.,is considering a new product that would have a selling price of $72 per unit and projected sales of 40,000 units.The new product would require an investment of $600,000.The desired return on investment is 19%.
Required:
Determine the target cost per unit for the new product.

Question

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The Answer of Management of Thebeau,Inc.,is considering a new product that would have a selling price of $72 per unit and projected sales of 40,000 units.The new product would require an investment of $600,000.The desired return on investment is 19%.
Required:
Determine the target cost per unit for the new product.