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21. LO.5 (Target costing) Utah Utensil has developed a new kitchen utensil. The firm has conducted significant market research and estimated the following pattern for
21. LO.5 (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 Expected Price per Unit 1 48,000 units $19 2 48,000 units $20 3 90,000 units $16 4 40,000 units $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? Note: no word limit, brief and to the point
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