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Caward Co is planning to introduce a new product. The company seeks to obtain a 25% margin on all products. The direct cost of the

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Caward Co is planning to introduce a new product. The company seeks to obtain a 25% margin on all products. The direct cost of the new product is N$124.50 per unit and the overhead cost is N$91.20 per unit. Market research indicates that the likely selling price should be N$265.00. You have been asked to carry out a target cost pricing exercise. What reduction in cost must be made to achieve the target cost? OA. N$4.62 B. N$16.95 C. N$22.60 D. N$88.95

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