Target costing The marketing department at Cleveland Furniture Mfg. has an idea for a new product...
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Target costing The marketing department at Cleveland Furniture Mfg. has an idea for a new product that is expected to have a six-year life cycle. After conducting market research, the company found that the product could sell for $800 per unit in the first four years of life and for $650 per unit for the last two years. Unit sales are expected to be as follows Year 1 3.000 Year 2 3240 Year 3 4230 Year 4 4500 Year 5 1.350 Year 6 000 Per-unit variable selling costs are estimated at $140 throughout the product's life; total fixed selling and administrative costs over the six years are expected to be $3.700.000 Cleveland Furniture Mig, desires a profit margin of 15 percent of selling price per unit a Compute the life tyde target cost to manufacture the product. (Round to the nearest cent.) Note: Round your answer to two decimal places (ie, round $2.4555 to $2.46) 50 perunt If the company expects the product to cost $430 to manufacture in the st year, what is the upper bound for manufacturing cost in the following five years? Note Round your answer to two decimal places the round $2.4555 to $2.401 80 per unit Target costing The marketing department at Cleveland Furniture Mfg. has an idea for a new product that is expected to have a six-year life cycle. After conducting market research, the company found that the product could sell for $800 per unit in the first four years of life and for $650 per unit for the last two years. Unit sales are expected to be as follows Year 1 3.000 Year 2 3240 Year 3 4230 Year 4 4500 Year 5 1.350 Year 6 000 Per-unit variable selling costs are estimated at $140 throughout the product's life; total fixed selling and administrative costs over the six years are expected to be $3.700.000 Cleveland Furniture Mig, desires a profit margin of 15 percent of selling price per unit a Compute the life tyde target cost to manufacture the product. (Round to the nearest cent.) Note: Round your answer to two decimal places (ie, round $2.4555 to $2.46) 50 perunt If the company expects the product to cost $430 to manufacture in the st year, what is the upper bound for manufacturing cost in the following five years? Note Round your answer to two decimal places the round $2.4555 to $2.401 80 per unit
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