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marysya [2.9K]
3 years ago
6

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? g
Business
1 answer:
masya89 [10]3 years ago
8 0

Answer:

3.52

Explanation:

Calculation to determine the target cost per unit?

Using this formula

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

Let plug in the formula

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

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

Target cost per unit=3.52 per unit

Therefore the target cost per unit is 3.52

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