Target costing After substantial marketing research, Ingram Corporation management believes that it can make and sell a new battery with a prolonged life for laptop computers. Management expects the market demand for its new battery to be 10,000 units per year if the battery is priced at $120 per unit. A team of engineers and accountants determines that the fixed costs of producing 8,000 units to 16,000 units is

$450,000.

Required Assume that Ingram desires to earn a $200,000 profit from the battery sales. How much can it afford to spend on variable cost per unit if production and sales equal 10,000 batteries?

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