Airflow Company sells a product in a competitive marketplace. Market analysis indicates that their product would probably sell at $28.00 per unit. Airflow management desires a profit equal to a 20% rate of return on invested assets of $1,400,000. They anticipate selling 50,000 units. Their current full cost per unit for the product is $25 per unit.

(1) What is the amount of profit per unit?

(2) What is the target cost per unit if they meet the market dictated price and management.

Answer rating: 100% (QA)

Answer aThe amount of the profit per u... View the full answer