A company considers producing a new product and selling 20,000 units per year at a selling price
Question:
A company considers producing a new product and selling 20,000 units per year at a selling price of $60 per unit. It will cost $800,000 to design, develop, and produce the units. If the company desires a 16% return on investment, what is the target cost per unit?
a. $ 6.40
b. $ 9.60
c. $ 40.20
d. $ 53.60
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d 5360 800000 16 128000 target OI ...View the full answer
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Related Book For 
Cost Management Measuring, Monitoring and Motivating Performance
ISBN: 978-1119185697
3rd Canadian edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang Hsuan Chen, Gail Cook
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