Question
Triple Company uses a target-costing approach to establish the product price amd provides the following information: Production volume 600,000 units per year Market price $30
Triple Company uses a target-costing approach to establish the product price amd provides the following information:
| Production volume | 600,000 | units per year |
| Market price | $30 | per unit |
| Desired operating income | 15% | of total assets |
| Total assets | $13,700,000 |
What is the target full product cost in total for the year? Assume all units produced are sold.
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Managerial Accounting An Introduction to Concepts Methods and Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
10th Edition
1111822239, 324639767, 9781111822231, 978-0324639766
