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Author Question: Blond Co. is using the target cost approach on a new product. Information gathered so far ... (Read 34 times)

kckanistras

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Question 1

Given that the selling price is $200, the variable unit cost is $120, and there's operating income of $50, what is the company's markup percentage?
◦ 250%
◦ 33.3%
◦ 50%
◦ 66.7%

Question 2

Blond Co. is using the target cost approach on a new product. Information gathered so far reveals:

Expected annual sales 400,000 units
Desired profit per unit $0.35
Target cost $168,000

What is the target selling price per unit?
◦ $0.42
◦ $0.70
◦ $0.77
◦ $0.35


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Marked as best answer by kckanistras on Feb 5, 2023

ad2018

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kckanistras

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Reply 2 on: Feb 5, 2023
Great answer, keep it coming :)


nyrave

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Reply 3 on: Yesterday
Excellent

 

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