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Umnica [9.8K]
3 years ago
10

Samples Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $21

per unit, management projects sales of 20,000 units. The new product would require an investment of $400,000. The desired return on investment is 12%.
The target cost per unit is closest to:

$21.00

$18.60

$23.52

$20.83
Business
1 answer:
Anvisha [2.4K]3 years ago
5 0

Answer:

$18.60

Explanation:

Target cost:

= Sales revenue - Profit

= (No. of units sold × Selling price per unit) - (Investment require × desired return on investment)

= (20,000 × $21) - ($400,000 × 0.12)

= $420,000 - $48,000

= $372,000

Target cost per unit:

= Target cost ÷ Number of units

= $372,000 ÷ 20,000

= $18.60

Therefore, the target cost per unit is closest to $18.60.

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Answer:

Results are below.

Explanation:

<u>The opportunity cost is the amount of money that you won't earn when choosing one option over another. </u>In this case, one option makes you expend money and the other earn money.

Opportunity cost= 12*4 + 25

Opportunity cost= $73

<u>Now, the total cost incorporated what you will expend in Six Flags:</u>

Total cost= 65 + 40 + 73

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Answer:

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3 years ago
Which of the following accurately describes total cost?a) It is the sum of the list price and incentives and allowances.b) It is
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Answer:

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3 years ago
Why does a country need good constitution ​
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Answer:  If the fee has not been paid by the end of the accounting period and no adjusting entry is made, this would cause: "d. revenues to be understated.".

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3 years ago
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