Hi,
Please explain how did you calculate the Target Cost (i.e $7.00 per unit) in example 1(a) in chapter 3.
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Life-Cycle Costing
12y ago#1The selling price is to be $10.50.
The target mark-up is 50% of cost.
So if the target cost is X, the profit will be 0.5X and so the selling price will be 1.5X.
If 1.5X = 10.50, then X = $7
Thanks for your help.
12y ago#3You are welcome :-)
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