Elio Corporation would like to use target costing for a new product that is under consideration. At a selling price of $84 per unit, management projects sales of 40,000 units. The new product would require an investment of $400,000. The desired return on investment is 11%.
Required:
Determine the target cost per unit for the new product.

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The Answer of Elio Corporation would like to use target costing for a new product that is under consideration. At a selling price of $84 per unit, management projects sales of 40,000 units. The new product would require an investment of $400,000. The desired return on investment is 11%.
Required:
Determine the target cost per unit for the new product.

Elio Corporation Would Like to Use Target Costing for a New