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TechnoDry is entering the professional hairdryer market Research shows that their customers wish to pay $304 or less for each dryer. Cost accountants at the
TechnoDry is entering the professional hairdryer market Research shows that their customers wish to pay $304 or less for each dryer. Cost accountants at the manufacturer have collected the following information Direct Materials /unit 46 Direct labor/unit 32 Variable overhead 26 Fixed costs annually 216,000 Estimated productions for year one 3,600 What is the estimated cost per unit for TechnoDry? What is the range of prices that TechnoDry could charge to make a profit? Assume that TechnoDry's target operating income per unit is $164. What is the target cost for the dryer? What can the company do to achieve its target cost calculation? Should the target cost calculated in requirement 3 include all costs (direct, variable, and fixed overhead)? Why or why not
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