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Bramble Corp. plans to introduce a new product and is using the target cost approach. Projected sales revenue is $911250 ($4.05 per unit) and target costs are $602250. What is the desired profit per unit? $1.37 $2.03 O $2.68 None of the above

Bramble Corp. plans to introduce a new product and is using the target cost approach. Projected sales revenue is $911250 ($4.05 per unit) and target costs are $602250. What is the desired profit per unit? $1.37 $2.03 O $2.68 None of the above

FINANCIAL ACCOUNTING
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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1. Bramble corp. plans to…
**Bramble Corp. plans to introduce a new product and is using the target cost approach.** Projected sales revenue is $911,250 ($4.05 per unit) and target costs are $602,250. What is the desired profit per unit? - ○ $1.37 - ○ $2.03 - ○ $2.68 - ○ None of the above **Note:** This text does not contain graphs or diagrams.
Transcribed Image Text:**Bramble Corp. plans to introduce a new product and is using the target cost approach.** Projected sales revenue is $911,250 ($4.05 per unit) and target costs are $602,250. What is the desired profit per unit? - ○ $1.37 - ○ $2.03 - ○ $2.68 - ○ None of the above **Note:** This text does not contain graphs or diagrams.
Expert Solution
Step 1

 

DESIRED PROFIT 

 

Desired profit per unit is Computed by Deducting Target Cost Per Unit From Projected Selling Price Per Unit.

Target profit is the expected amount of profit that the Managements of a business expect to achieve by the end of a designated accounting Period.

 

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