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Jerde Company manufactures scientific calculators. The product life of a calculator is four years. Each model typically offers similar features. Jerde targets an average profit
Jerde Company manufactures scientific calculators. The product life of a calculator is four years. Each model typically offers similar features. Jerde targets an average profit margin of 11% of its expected revenue over the life cycle. It does not expect its manufacturing cost to vary materially over the four-year life. Estimated volumes and unit price of a particular model over its expected life is given below: Applying the target costing model, the allowable unit cost of the product is: \begin{tabular}{l} A $63.75 per unit \\ \hline \end{tabular} B $69.80 per unit C $45.00 per unit $150.77 per unit
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