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(Click the icon to view the categories.) Determine the formula, then compute the estimated cost per unit. (Abbreviation used: oper. = operating.) Requirement 2. What
(Click the icon to view the categories.) Determine the formula, then compute the estimated cost per unit. (Abbreviation used: oper. = operating.) Requirement 2. What is the range of prices that Ultra Hair could charge to make a profit? To make a profit, Ultra Hair could charge between and Requirement 3. Assume that Ultra Hair's target operating income per unit is $157. What is the target cost for the dryer? Determine the formula, then compute the target cost per unit for the dryer. =Targetcostperunit= Requirement 4. What can the company do to achieve its target cost calculated in requirement 3 ? Requirement 5 . Should the target cost calculated in requirement 3 include all costs (direct, and variable and fixed overhead)? Why or why not? Target costs should include , because in the long run a company's prices and revenues must exceed its total costs if it is to remain in business. For 1, managers should only consider costs that vary in the short run. \begin{tabular}{lrr|} \hline Direct material/unit & $ & 53 \\ Direct labor/unit & $ & 27 \\ Variable overhead & $ & 31 \\ Fixed costs (annually) & $ & 177,100 \\ Estimated production for year one & & 3,850 \\ \hline \end{tabular}
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