Excel company intends to introduce a new product in the year 2021. The selling price of the product is set at sh.500 for each unit and the sales are projected to be 1000 units. A return of 20% on the investment of sh.500, 000 in the product will be required in the coming year. Determine the target cost for each unit of product.   Select one: A. Sh. 100 B. Sh. 400 C. Sh. 500 D. None of the above

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Excel company intends to introduce a new product in the year 2021. The selling price of the product is set at sh.500 for each unit and the sales are projected to be 1000 units. A return of 20% on the investment of sh.500, 000 in the product will be required in the coming year. Determine the target cost for each unit of product.

 

Select one:
A. Sh. 100
B. Sh. 400
C. Sh. 500
D. None of the above
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