Hepler Corporation Would Like to Use Target Costing for a New

question 48

Essay

Hepler Corporation would like to use target costing for a new product that is under consideration. At a selling price of $76 per unit, management projects sales of 50,000 units. The new product would require an investment of $400,000. The desired return on investment is 12%.
Required:
Determine the target cost per unit for the new product.

---

Definitions:

Negligently

In a manner characterized by failure to take proper care in doing something, leading to damage or harm.

Trucking Co.

A company engaged in the business of transporting goods and materials over land, typically using large vehicles like trucks.

Strict Liability

Strict liability is a legal doctrine that holds a party responsible for their actions or products without the plaintiff having to prove negligence or fault.