Question: Answer with solution thank you Case 1 Utah Utensil has developed a new kitchen utensil. The firm has conducted significant market research and estimated the

Answer with solution thank you

has conducted significant market research and estimated the following pattern for sales

of the new product: Year Expected Volume Expected Price per unit 1

Case 1 Utah Utensil has developed a new kitchen utensil. The firm has conducted significant market research and estimated the following pattern for sales of the new product: Year Expected Volume Expected Price per unit 1 48,000 units $19 2 48,000 units 20 3 90,000 units 16 4 40,000 units 12 The firm desires to net $3.50 per unit in profit over the life of the product and selling and administrative expenses are expected to average $200,000 per year. Required: 1. What is the target cost to produce the new utensil? Round off to the nearest cents. 2. Determine the cost gap if Utah anticipates that they will incur $10 per unit to manufacture the product, having most of the product costs are due to high prices of raw materials. What might Utah do regarding the results you have found in the given information?

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