Question: A cross-functional team at Covington 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 Covington Systems is developing a new product using the target costing methodology. Product features in comparison to competing products suggest a price of $3,100 per unit. The company requires a profit of 34 percent of selling price. What is the target cost per unit?

Target cost

per unit

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