Larry Cable Inc

question 14

Multiple Choice

Larry Cable Inc. plans to introduce a new product and is using the target cost approach. Projected sales revenue is $810,000 ($4.05 per unit) and target costs are $730,000. What is the desired profit per unit?

• A) $0.40
• B) $2.03
• C) $3.65
• D) None of the above

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Definitions:

Entitleds

Individuals who hold an exaggerated belief in their own importance or rights, expecting special treatment and privileges without corresponding responsibilities.

Expectancy Theory

A motivation theory stating that an individual's motivation is based on the perceived likelihood that effort will lead to successful performance and the value of the resulting rewards.

Construct Change

The process of modifying theoretical constructs or variables to better fit empirical data or to evolve theories over time.

Evaluation Systems

Structured processes used to assess performance, effectiveness, or value of employees, projects, or programs within an organization.