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22) Rodgers Inc. is launching a new product that will offer to sell for $25 per unit according to intensive marketing research study. Annual demand
22) Rodgers Inc. is launching a new product that will offer to sell for $25 per unit according to intensive marketing research study. Annual demand is estimated to be 70,000 units. Rodgers estimates that using current manufacturing technology, it can manufacture the units for $23 per unit, but if it purchases a new machine, the units can be manufactured for $22 per unit. Rodgers has a target profit of 20% return on sales. Under target costing what is the target for the new product to make the required form? A. 20 B 22 C. 25 D. 23
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