Hauber Corporation Would Like to Use Target Costing for a New

question 47

Multiple Choice

Hauber Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $26 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 20%.
-The desired profit according to the target costing calculations is:

• A) $312,000
• B) $60,000
• C) $1,560,000
• D) $1,500,000

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Definitions:

Infant

A very young child, especially one newly or recently born, usually considered to be from birth to 1 year old.

Zygote

A cell produced by the union of an ovum and a sperm.

Fetus

A developing human from roughly eight weeks after conception to the moment of birth.

Ovum

An egg, the female gamete or reproductive cell.