Answer:
$807,600
Step-by-step explanation:
Data provided:
Number of products sold per year = 2,100
Per unit price of the product = $460
Company's assets = $990,000
Target profit percentage = 16%
The total sales for the year
= Number of products sold per year × Per unit price of the product
The total sales for the year = 2,100 × $460 = $966,000
Now,
the target net income = total sales × target profit percentage
or
the target net income = $990,000 × 0.16 = $158,400
Therefore,
the target full product cost = Total sales - target net income
or
the target full product cost = $966,000 - $158,400 = $807,600
