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Product X target selling price per unit $ 10
Target profit 25% on cost
Current Cost $8.40 per unitWhich is the target cost gap?
Solutiontarget profit (25% of cost =20% of sales price) = $ 2 Why, could ou please explain the method?
target cost $ 10-$2= $8
target cost gap = $8.40-8$ = $0.40
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