What is a target cost per unit?

A$.$ The estimated cost for a product that potential customers are willing to pay.

B$.$ A cost that customers perceive as adding value, or utility, to a product or service. The added charge for the value enables the company to achieve the targeted operating income.

C$.$ The estimated long$-$run cost per unit of a product $($or service$)$ that, when sold at the target price, enables the company to achieve the targeted operating income per unit.

D$.$ The estimated short$-$run cost per unit of a product $($or service$)$ that, when sold at the target price, enables the company to achieve the targeted operating income per unit.