a) Standard costs are:

a) Target costs are:

The company X is producing sweetmeats. In order to attract new customers and increase competitiveness this company is redesigning one of its products: Chocolate A - chocolate with almonds. Management of the company requires a gross margin of 25%. Standard costs are calculate by using existing costs (the ABC method). a) Based on the ABC method calculate standard costs of chocolate with almonds? A market research was conducted in order to reveal customers' expectations regarding price and features of the chocolate with honey. Based on the market research results, a marketing manager evaluated that customers would be willing to pay 285,00kn/kg. b) Determine the target costs for 1kg of chocolate with almonds