Blumstein Corporation Would Like to Use Target Costing for a New

question 51

Multiple Choice

Blumstein 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 60,000 units. The new product would require an investment of $300,000. The desired return on investment is 11%.
-The target cost per unit is closest to:

• A)$22.00
• B)$23.81
• C)$21.45
• D)$24.42

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Definitions:

Republican Party

One of the two major political parties in the United States, historically associated with the abolition of slavery and civil rights, although its political stance has evolved over time.

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The highest court in the United States, serving as the final arbiter of legal disputes and constitutional matters.

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The national government of a federal country, where powers are divided between the central authority and constituent political units (states or provinces).

Freedpeople

Formerly enslaved individuals who were emancipated during and after the American Civil War.