Cullumber Inc. wants to introduce a new product with a unit selling price of $53. The product will require an investment of $2320000, and the company desires a 15% ROI. Projected sales are 58000 units. Compute the target cost per unit.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...
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Cullumber Inc. wants to introduce a new product with a unit selling price of $53. The product will require an investment of $2320000,
and the company desires a 15% ROI. Projected sales are 58000 units. Compute the target cost per unit.
O $46
O $55
O $66
O $47
Transcribed Image Text:Cullumber Inc. wants to introduce a new product with a unit selling price of $53. The product will require an investment of $2320000, and the company desires a 15% ROI. Projected sales are 58000 units. Compute the target cost per unit. O $46 O $55 O $66 O $47
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