Sonore, Inc. is launching a new product that it estimates will sell for $25 per unit. Annual
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Question:
Sonore, Inc. is launching a new product that it estimates will sell for $25 per unit. Annual demand is estimated to be 70,000 units. Sonora estimates that using its current technology, It can manufacture the units for $23 per unit, but ER purchases a new machine, the units can be manufactured for $22 per unit Sonora has a target pro t or 20% return on sales. Under target costing, what is the target cost for the new product?
O $22
O $20
O $23
O s2s
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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