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points QUESTION 1 Hardy Electronics plans to design, develop and produce a gadget. A survey by the marketing department reveals that similar product in the

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points QUESTION 1 Hardy Electronics plans to design, develop and produce a gadget. A survey by the marketing department reveals that similar product in the market sells at a price of $35 per unit and believes that the company would be able to sell 50,000 units per year at a competitive price The company believes that it needs to invest $2,500,000 in the design and development of the gadget and expects to have a 20% return on investment. Required: A Calculate the Target Cost Per unit of the new gadget /6 marks) B. Discuss under what circumstances companies use Target Costing [2 marks TTT Ariel T. DI**

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