Question#1 Hardy Electronics plans to design, develop and produce a gadget. A survey by the marketing department reveals that similar product in the market sells at a price of $35 per unit and believes that the company would be able to sell 50,000 units per year at a competitive price. The company believes that it needs to invest $2,500,000 in the design and development of the gadget and expects to have a 20% return on investment. a Required: A. Calculate the Target Cost Per unit of the new gadget B. Discuss under what circumstances companies use Target Costing