If the company meets the new target cost number, how much will they have to cut costs per unit, if any?
A) $1
B) $3
C) $2
D) $0

Question

Quizplus · Accepted Answer

To find out the amount by which the company needs to cut costs per unit, we need to subtract the new target cost ($7) from the current cost per unit ($9), which gives us a difference of $2 per unit. Therefore, the best choice is C) $2. The company would need to cut costs by $2 per unit in order to meet the new target cost.

If the Company Meets the New Target Cost Number, How