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Ron White Inc. plans to introduce a new product and is using the target cost approach. Projected ...
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Ron White Inc. plans to introduce a new product and is using the target cost approach. Projected ...
Ron White Inc. plans to introduce a new product and is using the target cost approach. Projected sales revenue is $810,000 ($4.05 per unit) and target costs are $730,000. What is the desired profit per unit?
▸ $0.40
▸ $3.65
▸ $2.03
▸ $1.63
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Managerial Accounting
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Author:
Davis
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$0.40
$810,000 ÷ $4.05 = 200,000; $730,000 ÷ 200,000 = $3.65; $4.05 - $3.65 = $0.40
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this is exactly what I needed
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