A company believes it can sell 1,000,000 units of its proposed new can opener at a price of...
Question:
A company believes it can sell 1,000,000 units of its proposed new can opener at a price of $14.00 each. If the company desires to make a profit of $3,000,000 on the can opener, what is the target cost per can opener?
Target Price:
Management must know all cost associated with a product to produce an adequate target price. The accounting department is an important function of this process.
Answer and Explanation: 1
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View this answerTarget Price is $17 per unit
Target price is calculated by multiplying the price per unit of $14 by the units to be produced. The result is then...
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Target Net Income: Definition & Formula
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