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Utah Utensil has developed a new kitchen utensil The firm has conducted significant marke

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Question

Utah Utensil has developed a new kitchen utensil The firm has conducted significant marke;Target Costing;Utah Utensil has developed a new kitchen utensil. The firm has conducted significant market research and estimated the following pattern for sales of the new product;Year;Expected Volume (units);Expected Price per unit;1;48,000;19;2;48,000;20;3;90,000;16;4;40,000;12;If the firm desires to net $3.50 per unit in profit over the life of the product, and selling and administrative expenses are expected to average $50,000 per year, what is the target cost to produce the new utensil?

 

Paper#29451 | Written in 18-Jul-2015

Price : $27
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