Globiane, Inc. has designed a new product that could be sold for $1,000. If management requires...
Globiane, Inc. has designed a new product that could be sold for $1,000. If management requires a profit of 30% of the selling price, what is the highest cost (target cost) management would accept to make this product?
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$700 |
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$300 |
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$1,429 |
||
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$3,333 |
Homework Answers
Answer- The highest cost (target cost) management would accept to make this product = $700.
Explanation- Target cost = Selling price – Desired profit
= $1000-($1000*30%)
= $700
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