Hauber Corporation Would Like to Use Target Costing for a New

question 61

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 target cost per unit is closest to:

• A) $26.00
• B) $31.20
• C) $30.00
• D) $25.00