Wenner Corporation Would Like to Use Target Costing for a New

question 108

Multiple Choice

Wenner Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $44 per unit, management projects sales of 10,400 units. The new product would require an investment of $904,000. The desired return on investment is 10%.The desired profit according to the target costing calculations is:

• A) $90,400
• B) $367,200
• C) $45,760
• D) $457,600

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