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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Definitions:

Count

To determine the total number of items in a set by listing them one by one.

Primary Circular Reaction

A component of sensorimotor development in infants, involving repetitive actions focused on the baby's own body that are pleasurable and serve as a means of learning about the world.

Secondary Circular Reaction

A stage in Piaget's theory of cognitive development where infants aged 4-8 months repeat actions that have pleasurable or interesting results, showing an early form of experimentation.

Preoperational Thought

A reiteration of preoperational, highlighting the early childhood cognitive phase where imagination flourishes yet logical reasoning abilities are not yet developed.