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Nikolay [14]
3 years ago
6

Columbus Inc. sells a high end hair dryer in a super competitive marketplace. As a result, market research and competitive press

ures influence the determination of their selling price. Their marketing department has done a comprehensive analysis and It looks like a price of $62 would be appropriate given the present business environment. The company has a goal of earning $32 on each unit. What is the target unit cost of each hair dryer
Business
1 answer:
vovikov84 [41]3 years ago
7 0

Answer:

Target unitary cost= $30

Explanation:

Giving the following information:

Selling price= $62 per unit

Desired profit= $32 per unit

<u>To calculate the target unitary cost, we need to use the following formula:</u>

Target unitary cost= selling price - desired profit

Target unitary cost= 62 - 32

Target unitary cost= $30

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