Author Question: Xtech Games Inc. has a new video game cassette for the upcoming holiday season. It is trying to ... (Read 140 times)

NguyenJ · **on:** Mar 6, 2021

Question 1

Which of then following identifies an estimated price customers are willing to pay and then computes the cost to be achieved to earn the desired profit.
◦ Cost-plus pricing
◦ Target costing
◦ Kaizen costing
◦ Peak-load costing

Question 2

Xtech Games Inc. has a new video game cassette for the upcoming holiday season. It is trying to determine the target cost for the game if the selling price per unit will be set at $70, the going price for video games, and the firm wants to earn a target operating income of 30% of sales. What will be the target cost per unit for the new game?
◦ $70
◦ $49
◦ $30
◦ $21

JCABRERA33 · **Reply #1 on:** Mar 6, 2021

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