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1. Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management

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1. Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Their current full cost for the product is $44 per unit. (a)What is the desired profit per unit? (b) In order to meet the new target cost, how much will the company have to cut costs per unit, if any? (c) What is the target cost of the company's product? (d) If the company cannot cut costs any lower than they already are, what would the profit margin on sales be to meet the market selling price? 2. The Dawson Company manufactures small lamps and desk lamps. The following shows the Setups Inspections Assembly (dlh) 9.000 16 000

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