Shimada Products Corporation of Japan plans to introduce a new electronic component to the market at a target selling price of $15 per unit. The company is investing $12,960,000 to purchase the equipment it needs to produce and sell 324,000 units per year. Its required rate of return on all investments is 12%. Required: Compute the component's target cost per unit. (Round your answer to 2 decimal places.) Target cost per unit

Shimada Products Corporation of Japan plans to introduce a new electronic component to the market at a target selling price of $15 per unit. The company is investing $12,960,000 to purchase the equipment it needs to produce and sell 324,000 units per year. Its required rate of return on all investments is 12%. Required: Compute the component's target cost per unit. (Round your answer to 2 decimal places.) 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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