Question: A cross-functional team at Bellevue Systems is developing a new product using the target costing methodology. Product features in comparison to competing products suggest a

A cross-functional team at Bellevue Systems is developing a new product using the target costing methodology. Product features in comparison to competing products suggest a price of $2,200 per unit. The company requires a profit of 9 percent of selling price.

What is the target cost per unit?

Target cost $___________per unit.

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