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Target Costing : A company wants to introduce a new product with a target selling price of $80 per unit. The company requires a profit

Target Costing: A company wants to introduce a new product with a target selling price of $80 per unit. The company requires a profit margin of 20% of the selling price. The company estimates that the variable costs per unit will be $40. Calculate the target cost per unit and determine whether the company can meet its target with the estimated variable costs.

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