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Target Costing H. Banks Company would like to design, produce, and sell versatile toasters for the home kitchen market. The toaster will have four slots that adjust in thickness to accommodate both slim slices of bread and oversized bagels. The target price is $70. Banks requires that new products be priced such that 22% of the price is profit. Required: If required, round your answers to two decimal places. 1.  Calculate the amount of desired profit per unit of the new toaster. $ 2.  Calculate the target cost per unit of the new toaster. $

Target Costing H. Banks Company would like to design, produce, and sell versatile toasters for the home kitchen market. The toaster will have four slots that adjust in thickness to accommodate both slim slices of bread and oversized bagels. The target price is $70. Banks requires that new products be priced such that 22% of the price is profit. Required: If required, round your answers to two decimal places. 1.  Calculate the amount of desired profit per unit of the new toaster. $ 2.  Calculate the target cost per unit of the new toaster. $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Target Costing

H. Banks Company would like to design, produce, and sell versatile toasters for the home kitchen market. The toaster will have four slots that adjust in thickness to accommodate both slim slices of bread and oversized bagels. The target price is $70. Banks requires that new products be priced such that 22% of the price is profit.

Required:

If required, round your answers to two decimal places.

1.  Calculate the amount of desired profit per unit of the new toaster.
$

2.  Calculate the target cost per unit of the new toaster.
$

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