Wenner Corporation Would Like to Use Target Costing for a New

question 86

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 10,000 units. The new product would require an investment of $900,000. The desired return on investment is 10%.
-The target cost per unit is closest to:

• A) $44.00
• B) $38.50
• C) $48.40
• D) $35.00

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