A New Product Is Being Designed by an Engineering Team

question 33

Multiple Choice

A new product is being designed by an engineering team at Gray Security.Several managers and employees from the cost accounting department and the marketing department are also on the team to evaluate the product and determine the cost using a target costing methodology.An analysis of similar products on the market suggests a price of $135 per unit.The company requires a profit of 30% of selling price.How much is the target cost per unit?

• A)$175.50
• B)$81.00
• C)$40.50
• D)$94.50

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Definitions:

Partner Style

A leadership approach emphasizing collaboration, trust, and mutual respect between leaders and followers.

Exemplary Follower

An individual who actively supports their leader, contributes positively to the team's objectives, and demonstrates initiative, responsibility, and commitment.

Followership Theory

The study and understanding of the nature and role of subordinates in the leadership process, emphasizing their contribution to leadership success.

Political Scientist

A social scientist specializing in the study of governments, political processes, and political behavior.