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Thepotemich [5.8K]
3 years ago
12

Crane Company is contemplating the production and sale of a new widget. Projected sales are $375000 (or 75000 units) and desired

profit is $30000. What is the target cost per unit?
Business
1 answer:
skelet666 [1.2K]3 years ago
5 0

Answer:

$0.1

Explanation:

Data provided

Projected Sales = $37,500

Desired profit = $30,000

Number of units sold = 75,000

The computation of target cost per unit is shown below:-

Targeted total cost = Projected Sales - Desired profit

= $37,500  - $30,000

= $7,500

Target cost per unit = Targeted total cost ÷ Number of units sold

= $7,500 ÷ 75,000

= $0.1

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If a company adds 60 new workstations at a cost of $100,000 each and also spends $20 million for addition in its camera/drone as
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