Refer to Part B below....

Symphony Sound is designing a portable recording studio to be sold to consumers. The team developing the product includes representatives from marketing, engineering, and cost accounting. The recording studio will include sound-canceling monitor headphones, audio recording and enhancement software, several instrumental and vocal microphones, and portable folding acoustic panels. With this set of features, the team believes that a price of $4,600 will be attractive in the market place. Symphony Sound seeks to earn a per unit profit of 25 percent of selling price.

(a)

	Your answer is correct.

Calculate the target cost per unit.

Target cost

$ per unit

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(b) The team has estimated that the fixed production costs associated with the product will be $1,779,200, and variable costs to produce and sell the item will be $2,810 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