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hello,
With respect to Life cycle costing in chapter 3. Please i need you to explain how you arrived at the $7 target cost as it’s completely unclear to me. Thank youThe selling price is $10.50, and the company wishes to achieve a mark-up of 50% on cost.
So….if the cost is x, then the mark-up is 0.5x and the selling price is 1.5x.
Since 1.5x = 10.50, x = 10.50/1.5 = $7.
(Have you watched the lecture on this chapter?)
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