ABC has developed a new kitchen utensil. The firm hasconducted significant market research and estimated thefollowing pattern for sale of new productYEAR EXPECTED VOLUME EXPECTED PRICE PER UNIT148,00019248,00020390,00016440,00012The firm wants a net minimum of 3.5 profit per unit over theproduct life. Fixed average expenses related to the new productis expected to be 50,000 annually. Calculate the target cost perunit.

>Target cost is the cost of the product that has been determined by analysing the difference…

ABC has developed a new kitchen utensil. The firm has conducted significant market research and estimated the following pattern for sale of new product YEAR EXPECTED VOLUME EXPECTED PRICE PER UNIT 1 48,000 19 48,000 20 3 90,000 16 4 40,000 12 The firm wants a net minimum of 3.5 profit per unit over the product life. Fixed average expenses related to the new product is expected to be 50,000 annually. Calculate the target cost per unit.

ABC has developed a new kitchen utensil. The firm has conducted significant market research and estimated the following pattern for sale of new product YEAR EXPECTED VOLUME EXPECTED PRICE PER UNIT 1 48,000 19 48,000 20 3 90,000 16 4 40,000 12 The firm wants a net minimum of 3.5 profit per unit over the product life. Fixed average expenses related to the new product is expected to be 50,000 annually. Calculate the target cost per unit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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