Bond Co Is Using the Target Cost Approach on a New

question 102

Multiple Choice

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

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