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

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Definitions:

Identical Twin

One of a pair of twins who develop from a single fertilized egg, sharing the same genetic material.

Fraternal Twin

Siblings who are born at the same time as a result of separate eggs being fertilized by separate sperm, sharing about 50% of their genes, similar to ordinary siblings.

Genetically Influenced

Genetically influenced refers to traits, behaviors, or conditions that have their origins in an individual's DNA, shaped by the combination of genes inherited from their parents.

Spice

Often a reference to synthetic cannabinoids, designer drugs that mimic THC, the active substance in marijuana, causing psychoactive effects.