Bond CoIs Using the Target Cost Approach on a New Product

question 111

Multiple Choice

Bond Co.is using the target cost approach on a new product.Information gathered so far reveals: $\begin{array}{ll}\text { Expected annual sales } & 400,000 \text { units } \\\text { Desired profit per unit } & \$ 0.35 \\\text { Tarqet cost } & \$ 168,000\end{array}$ What is the target selling price per unit?

• A)$0.42
• B)$0.70
• C)$0.35
• D)$0.77

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Definitions:

Defendant's Negligence

Defendant's negligence is a legal concept where the defendant failed to act with the level of care that someone of ordinary prudence would have exercised under the same circumstances, leading to harm or damage.

Negligence Per Se

An act that is considered negligent because it violates a statute or regulation.

Statute

A statute is a formal written enactment of a legislative body, serving as a law or regulation.

Negligence Per Se

A legal doctrine that deems an act to be negligent because it violates a statute or regulation.