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: $$\begin{array} { l l } \text { Expected annual sales } & 400,000 \text { units } \\\text { Desired profit per unit } & \$ 0.35 \\\text { Target cost } & \$ 168,000\end{array}$$ What is the target selling price per unit?

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

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