Information is given about a company's production of a product.

Target Costing:

estimated units sold: 500,000

Market Price: $15.00

Investment: $300,000.00

Return of Investment: 15%

Questions:

1. Based on the information above, what should the company's target cost per unit be?

2. What type of company would use a target costing in making managerial decisions regarding the sale of its products or services? A price taker or a price setter?

THANK YOU!!