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Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to
Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course. One small laser gun, called LittleLaser, appears to have a very large potential market. Because of competition, Eckert does not believe that it can charge more than $91 for LittleLaser. At this price, Eckert believes it can sell 101,000 of these laser guns. Eckert will require an investment of $6,868,000 to manufacture, and the company wants an ROI of 25%. Determine the target cost for one LittleLaser. Target cost $ Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 25,900 units. Per Unit Total Direct materials $18 Direct labor $8 Variable manufacturing overhead $14 Fixed manufacturing overhead $414,400 Variable selling and administrative expenses $7 Fixed selling and administrative expenses $51,800 The company uses a 40% markup percentage on total cost. Your answer is correct Compute the total cost per unit. Total cost per unit S 65 e Textbook and Media X Your answer is incorrect. Compute the target selling price. Target selling price GAL
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