If the company meets the new target cost number, how much will it have to cut costs per unit, if any?
A)$1
B)$3
C)$2
D)$0

Name: If the company meets the new target cost number, how much will it have to cut costs per unit, if any? A)$1 B)$3 C)$2 D)$0
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Question

Quizplus · Accepted Answer

The difference between the original cost per unit and the new target cost per unit is $2. Therefore, the company will have to cut costs by $2 per unit to meet the new target cost number. So, option C is the best choice.

If the Company Meets the New Target Cost Number, How