Microsoft Corporation is developing a new software product and aims to achieve a target selling price of $500 per unit. Based on cost estimates, the company expects the following costs per unit:

• Direct Materials Cost: $200
• Direct Labor Cost: $100
• Manufacturing Overhead: $50

Requirements:

1. Calculate the target cost per unit for Microsoft's new software product.
2. Determine whether Microsoft can achieve its target selling price with the estimated costs.
3. Analyze the cost components that may need adjustment to meet the target cost.