Question
Well Water Inc. wants to produce and sell a new flavored water. In order to penetrate themarket, the product will have to sell at $2.00
Well Water Inc. wants to produce and sell a new flavored water. In order to penetrate themarket, the product will have to sell at $2.00 per 12 oz. bottle. The following data hasbeen collected:
Annual sales50,000 bottles
Projected selling and administrative costs$8,000
Desired profit$70,000
The target cost per bottle is
a.$0.44.
b.$0.60.
c.$0.16.
d.$0.40
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Cost Accounting A Managerial Emphasis Revised
Authors: Charles T. Horngren, Monte Wynder, William Maguire, Rebecca Tan, Srikant Datar, Lester E. Heitger
1st Australian Edition
1442554770, 978-1442554771
