Q39,40

A company is planning a new product. Market research information suggests that the product should sell 20,000 units at $35.00/unit. The company seeks to make a margin of 20% on sales. It is estimated that the lifetime costs of the product will be as follows:

a. Research and development costs $60,000

b. Manufacturing costs $25/unit

c. Decommissioning Costs $40,000

What is the Target Cost per unit? $25.00$30.00$28.00$29.16

What is the original lifecycle cost per unit? $27.00$30.00$28.00$29.16