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wariber [46]
3 years ago
11

Wasson Widget Company is contemplating the production and sale of a new widget. Projected sales are $300,000 (or 75,000 units) a

nd desired profit is $36,000. What is the target cost per unit?
a. $2.50
b. $2.20
c. $2.80
d. $3.00
Business
1 answer:
Ber [7]3 years ago
8 0

Answer:

Target cost per unit = $3.52

Explanation:

Given:

Projected sales = $300,000 or 75,000 units

Desired profit = $36,000

Find:

Target cost per unit

Computation:

Target cost per unit = [Projected sales - Desired profit] / Total units

Target cost per unit = [$300,000 - $36,000] / 75,000

Target cost per unit = $264,000 / 75,000

Target cost per unit = $3.52

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