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Target costing: Unit cost

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Calculation Company is contemplating introducing a new type of calculator to complement its existing line of scientific calculators. The target price of the calculator is $75; annual sales volume of the new calculator is expected to be 500,000 units. Calculation has a 15% return-on-sales target.
Compute the unit target cost per calculator.

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Response provides guidance for target costing unit cost.

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Calcutron Company is contemplating introducing a new type of calculator to complement its existing line of scientific calculators. The target price of ...

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