Assuming that Duckterry\'s profit is currently $15.00 per unit and their cost is

Question

Assuming that Duckterry's profit is currently $15.00 per unit and their cost is $35.00 of which $25.00 are variable and $10.00 are fixed, what would be their target cost to meet the competitor's price of $28.00? INOTE: These numbers are obviously not the solution to other Duckterry problems!] ost Pool with 2000 Driver Units Used ost per Drver Unit otal Cost (Average) nits production arn rect Labor aintenance ther Mfg. Costs arketing Costs 2,000 lbs 000 hrs 000 MC hours 0,000 units 0,000 units 2.75 11.50 1.50 5.00 10.00 198,000.00 23,000.00 12,000.00 100,000.00 200,000.00 Select one a.$15.00 O b. $10.00 C. $13.00 d. $28.00 O e. $25.00

Explanation / Answer

Target cost = target Price - target profit

= $28 - $ 15

= $ 13

Option C is correct.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---