Question

QUESTION 9 Not yet answered Marked out of 1,.00 Flag question Plunge, Inc. produces electronic devices such as computers and cell phones. It has recently introduced a solar-powered charger but realizes that to compete effectively in the future, it must be able to lower the cost of production and the selling price. The current cost per unit for producing the charger is $28, and Plunge is estimating inflation on the solar-powered charger components and supplies purchased externally to be 1.25% in the coming year. In the most recent period, these items had a cost of $12. Despite these cost increases, plunge has adopted a Kaizen cost improvement model that targets a 796 co decrease. Plunge's Kaizen cost target (rounded to two decimal places) for the solar-powered charger is Select one O A. $26.18 B. $28.42 C. $28.15 D. $26.37 ○ ○

Answer 1

The answer is calculated as:

=[($12 x 1.0125) + ($28 - $12)] x (100-.07)

= $26.18

The answer is A.