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At the ZYXM Company, a new truck part is being designed by the engineering team. Both the accounting and marketing department are asked to evaluate
At the ZYXM Company, a new truck part is being designed by the engineering team. Both the accounting and marketing department are asked to evaluate the product and use the target pricing method to determine the target cost of the new product. Currently, the company's competitors are selling a similar truck part for $130 per unit. ZYXM Company requires a profit of 45% of the selling price.
Target cost per unit
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