Answer:
52.34
Explanation:
The target cost should be unit cost which satisfies the expected return.
In this case, if unit cost is higher than 52.34 the return will be lower than 28%
This is the number Shimada will engage the calculator project. If the unit cost doesn't get to this level through development and investing in a certai dead-lines, the projec will be discontinued.
Answer:
d.the company is precisely breaking even.
Explanation:
Margin of safety is referred to current sales - Break even sales ratio to current sales as a percentage.
Basically it is quoted as follows:
Therefore, when the current sales = Break even sales then only the company will have margin of safety = 0
Thus, at 0 margin of safety the company basically is at no profit no loss situation, that is break even.
Because the consumers are losing jobs, which leads to less purchases. Hope this helps!