Juanita Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $46 per unit. Juanita Company management has budgeted for operating income of $4 per unit at a volume of 10,000 units. Their current full cost per unit for the product is $43 per unit. What is the target cost of the Juanita Company's product?

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The Answer of Juanita Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $46 per unit. Juanita Company management has budgeted for operating income of $4 per unit at a volume of 10,000 units. Their current full cost per unit for the product is $43 per unit. What is the target cost of the Juanita Company's product?

Juanita Company Sells a Product in a Competitive Marketplace