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How Do Managers Calculate a Target Cost for the Selling

Question 55

Multiple Choice

How do managers calculate a target cost for the selling price of a product?


A) Add net sales to gross sales.
B) Subtract net sales from the cost.
C) Subtract the operating cost per unit of the product.
D) Subtract the operating income per unit of target product.
E) Add the net sales to the operating income per unit and subtract costs.

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