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Bonita Industries wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2

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Bonita Industries wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2 per 12 oz. bottle. The following data has been collected Annual sales 50000 bottles $7800 Projected selling and administrative costs Desired profit $60000 The target cost per bottle is O $0.20 $0.16 $0.80 50.64 Waterway Industries plans to introduce a new product and is using the target cost approach. Projected sales revenue is $1590000 ($6.00 per unit) and target costs are $1457500. What is the desired prot per unit? $0.50 O $3.00 $5.50 None of the above Marigold Corp.is contemplating the production and sale of a new widget. Projected sales are $480000 (or 80000 units) and desired profit is $32000. What is the target cost per unit? $6.00 O $4.00 O $6.40 O $5.60 Sheridan Company has gathered the following information concerning one model of shoe: $50000 $30000 $160000 Variable manufacturing costs Variable selling and administrative costs Fixed manufacturing costs Fixed selling and administrative costs Investment ROI $120000 $1700000 30% 5000 pairs Planned production and sales What is the desired ROI per pair of shoes? O $167 O $174 O $72 $102

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