1. Denner Co. is using the target cost approach on a new product. Information gathered so far reveals: Expected annual sales 600,000 units Desired profit per unit $0.25 Target cost $168,000 I What is the target selling price per unit? a $0.28 b. $0.50 c. $0.25 d. $0.53 2. Runner Inc. plans to introduce a new product and is using the target cost approach. Projected sales revenue is $810,000 ($4.50 per unit) and target costs are $748,800. What is the desired profit per unit? a. $0.34 b. $2.08 C. $4.16 d. None of the above 3. Tayson Widget Company is contemplating the production and sale of a new widget. Projected sales are $187,500 (or 75,000 units) and desired profit is $22,500. What is the target cost per unit? a $2.50 b. $2.20 c. $2.80 d. $3.00