Sonore, Inc. is launching a new product that it estimates will sell for $25 per unit. Annual demand is estimated to be 70,000 units. Sonora estimates that using its current technology, It can manufacture the units for $23 per unit, but ER purchases a new machine, the units can be manufactured for $22 per unit Sonora has a target pro t or 20% return on sales. Under target costing, what is the target cost for the new product? 

O $22 

O $20 

O $23 

O s2s

Answer rating: 100% (QA)

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