Target cost

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May 14, 2020 at 3:14 pm #570831
pinkyjovin123
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Hi sir,

Please help me with this solution to get the answer 450

The selling price of product K is set at $450 for each unit and the Co requires a return of 20% from the product.

What is the target cost for each unit for the coming year?
May 14, 2020 at 3:42 pm #570841
John Moffat
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The answer cannot possibly be $450. You have either mistyped the question or there is a mistake in the answer in your book.
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