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:

Operant Conditioning

A learning process where behavior is controlled through consequences like rewards or punishments.

Behavior Modification

A therapy approach aimed at changing undesired behaviors through reinforcement, punishment, and other learning principles.

Modeling

A method used in various contexts, including psychology, whereby learning occurs through the observation and replication of behaviors.

Exposure Therapy

A psychological treatment that helps individuals confront their fears by gradual, controlled exposure to the feared object or context without any danger.