Answer:
$0.40
Explanation:
Total Cost of Goods Sold = Sales revenue - Desired profit
Total Cost of Goods Sold = ($2*50,000) - $70,000
Total Cost of Goods Sold = $100,000 - $70,000
Total Cost of Goods Sold = $30,000
Target cost per bottle = Total cost of goods sold / Units sold
Target cost per bottle = $20,000/50,000
Target cost per bottle = $0.40
So, the target cost per bottle will be $0.40
