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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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
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