Shimada Products Corporation of Japan is anxious to enter the electronic calculator market. Management believes that in order to be competitive in world markets, the price of the electronic calculator that the company is developing cannot exceed $70. Shimadas required rate of return is 23% on all investments. An investment of $2,800,000 would be required to purchase the equipment needed to produce the 45,000 calculators that management believes can be sold each year at the $70 price.

Required:

Compute the target cost of one calculator.

sales
Less desired profit
Target cost for____ units
Target cost per unit