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