Pedrotti Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $29 per unit, management projects sales of 40,000 units. The new product would require an investment of $400,000. The desired return on investment is 16%. The target cost per unit is closest to: (Do not round intermediate calculations.)a. $36.25b. $2.90c. $27.40d. $29.00

= $27.4

Explanation:

First, what is the formula for target cost = The Selling Price per unit - the Profit Margin Per unit

Selling price per Unit =$29

The Profit Margin = 16% desired return on investment

The Investment Itself = $400,000

Therefore, we calculate the profit margin as follows

= 16% x $400,000 = $64,000

Since the number of Units of sales = 40,000

We calculate the Profit Margin Per Unit = $64,000 / 40,000

= $1.6

Finally, what is the target cost per unt

First, what is the formula for target cost = The Selling Price per unit - the Profit Margin Per unit

= $29 -$1.6

= $27.4

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answerindividual preferences are not revealed in the market for the good;