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Management of Thebeau, Incorporated, is considering a new product that would have a selling price of $49 per unit and projected sales of 35,000 units. The new product would require an investment of $570,000. The desired return on investment is 14%.Required:
Determine the target cost per unit for the new product.
Margin of Safety
The amount by which sales can drop before reaching the break-even point, typically expressed as a percentage of current sales.
Sales
The total revenue generated from goods or services sold by a company.
Net Operating Income
Revenue derived from the principal activities of a business before interest and taxes are subtracted.
Sales Dollars
The entire income produced through the selling of products or services, denoted in financial figures.
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