Wenner Corporation Would Like to Use Target Costing for a New

question 178

Multiple Choice

Wenner Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $44 per unit, management projects sales of 10,000 units. The new product would require an investment of $900,000. The desired return on investment is 10%.The target cost per unit is closest to:

• A) $44.00
• B) $38.50
• C) $48.40
• D) $35.00

---

Definitions:

Self-Sufficient

The ability of an individual, household, or community to meet its own needs without external aid.

Efficient Grower

An agricultural producer who can produce goods at a lower cost and with greater productivity compared to others.

Trade

The exchange of goods, services, or both between two or more parties, either within a country or internationally.

Resource Scarcity

A situation where resources are limited in availability and cannot satisfy all uses and desires.