Question: A new product is being designed by an engineering team at Gray Security, Seven managers and employees form the cost accounting department and the marketing

A new product is being designed by an engineering team at Gray Security, Seven managers and employees form the cost accounting department and the marketing department are also on the team to evaluate the product and determine the cost using a target costing methodology. An analysis of similar products on the market suggests a price of $135 per unit. The company requires a profit of 30% of selling price. How much is the target cost per unit?

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