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Problem 8-9 (Part Level Submission) Covington Plumbing Fixtures is developing a preplumbed acrylic shower unit. The team developing the product includes representatives from marketing, engineering,
Problem 8-9 (Part Level Submission) Covington Plumbing Fixtures is developing a preplumbed acrylic shower unit. The team developing the product includes representatives from marketing, engineering, and cost accounting. To date, the team has developed a set of features that it plans to incorporate in the unit, including a seat, two shower heads, four body sprays, and a steam unit. With this set of features, the team believes that a price of $4,900 will be attractive in the marketplace. Covington seeks to earn a per unit profit of 30 percent of selling price. (a) Your answer is correct. Calculate the target cost per unit. Target cost 3430 per unit Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT Attempts: 1 of 3 used (b) x Your answer is incorrect. Try again. The team has estimated that the fixed production costs associated with the product will be $2,430,000, and variable costs to produce and sell the item will be $2,430 per unit. In light of this, how many units must be produced and sold to meet the target cost per unit? Units produced and sold 2000
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