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Austins Baby Jeans makes generic jeans for a popular department store. Knowing that this is a competitive market, ABJ employs Target Pricing. Based on its
Austins Baby Jeans makes generic jeans for a popular department store. Knowing that this is a competitive market, ABJ employs Target Pricing. Based on its expectation of competitors prices, ABJ estimates that it can charge $45 for each pair of chic baby jeans, selling 44,000 units this year. To remain viable in the long term, ABJ must earn a target operating income of 13% per unit. Its current average unit cost is $41.27. With this information, what is ABJs target unit cost?
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