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Groins Professor Mullen Co. is using the Target Cost approach on a new product. Information gathered so far reveals: What is the Market Price (MP)

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Groins Professor Mullen Co. is using the Target Cost approach on a new product. Information gathered so far reveals: What is the Market Price (MP) per unit? $0.42 $0.50 $0.25 $0.67 Lao Shu Bruce Inc. plans to introduce a new product and is using the target cost approach. Projected sales revenue is S810,000 (MP) ($4.50 per unit) and target costs (TC) are $729.000. What is the desired profit (DP) per unit? $0.45 $2.25 $4.05 None of the above Professor Mullen's Excellent Suit Co. has received a shipment of suits that cost $150 each. If the compare uses cost-plus pricing and applies a markup (M/U) percentage of 60%, what is the Target Sales Price (TSP per suit? $250 $240 $210 $375 The calculation to determine Target Cost (TC) is variable manufacturing costs (V/C) + fixed manufacturing costs (F/C). sales price (SP) - (variable manufacturing costs + fixed manufacturing costs). variable manufacturing costs (V/C) + selling and administrative variable costs (S &A). sales price (SP) - desired profit (DP)

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