Cost per Unit
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Problem 7-49 Unit target cost per calculator
Calcutron 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. Calcutron has a 15% return on sales target. Compute the unit target cost per calculator.
(see attached file for chart)
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The solution explains the calculation of target cost per unit.
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