Wasson Whatsit Company Is Contemplating the Production and Sale of a New

question 79

Multiple Choice

Wasson Whatsit Company is contemplating the production and sale of a new product.Projected sales are $300,000 or 75,000 units and desired profit is $36,000. What is the target cost per unit?

• A)$4.00
• B)$3.52
• C)$4.48
• D)$4.80

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Definitions:

Year

A period of time consisting of 365 days, or 366 in a leap year, used as a measure of time for calendars, age, and time intervals.

Sponsor

An entity or individual that supports an event, activity, person, or organization financially or through the provision of products or services.

Geometric Average Rate

The average compound return per period over a time span, useful for comparing different investments or portfolios.

Compounding

The process where the value of an investment increases because the earnings on an investment, both capital gains and interest, earn interest as time passes.