(Target costing) Snowden Corporation is in the process of developing an outdoor power source for various electronic devices used by campers. Market research has indicated that potential purchasers would be willing to pay $175 per unit for this product. Company engineers have estimated first-year production costs would amount to $180 per unit. On this type of product, Snowden would nor¬ mally expect to earn $10 per unit in profits. Using the concept of target costing, write a memo that (1) analyzes the prospects for this product and (2) discusses possible organizational strategies.

LO1