The target cost per unit is closest to:
A)$21.00
B)$18.60
C)$23.52
D)$20.83

Name: The target cost per unit is closest to: A)$21.00 B)$18.60 C)$23.52 D)$20.83
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Question

Quizplus · Accepted Answer

Target cost per unit = (Total projected cost)/(Total projected units)
= ($2,329,500 + $675,000)/(100,000)
= $30.045
Rounding it off, the target cost per unit is approximately $30.05. Among the given choices, only option B ($18.60) is closest to the calculated target cost per unit.

The Target Cost Per Unit Is Closest To