Hanisch Corporation Would Like to Use Target Costing for a New

question 134

Multiple Choice

Hanisch Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $22 per unit, management projects sales of 50,000 units. The new product would require an investment of $400,000. The desired return on investment is 14%. The target cost per unit is closest to:

• A) $22.00
• B) $23.80
• C) $20.88
• D) $25.08

---

Definitions:

Overgeneralization

A cognitive distortion where an individual draws a general rule or conclusion based on a single or limited number of events.

REBT

Rational Emotive Behavior Therapy, a form of psychotherapy that helps individuals identify irrational beliefs and patterns of thinking to develop healthier emotional responses and behaviors.

ABC Model

A cognitive-behavioral approach suggesting that it is not merely events that cause an individual distress, but rather the beliefs about those events.

Irrational Beliefs

False or unrealistic thoughts that can lead to emotional distress and behavioral problems.