Quigley, Inc. is introducing a new product. Since the market for this product is very competitive, the company plans to use a target cost approach. Projected sales revenue is $950,000 ($95 per unit) and target costs are $700,000.
a. What is the desired profit per unit?
b. What is the target cost for the product?

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The Answer of Quigley, Inc. is introducing a new product. Since the market for this product is very competitive, the company plans to use a target cost approach. Projected sales revenue is $950,000 ($95 per unit) and target costs are $700,000.
a. What is the desired profit per unit?
b. What is the target cost for the product?