Answer:
The hair dryer cost cannot exceed 27 dollars per unit
Explanation:
the target cost will the one which achieve the target profit at the selling price of the market.
In this case we are given that selling price is $53 and we want to achieve a 26 dollar gain per unit therefore:
revenue - cost = profit
revneue - profit = cost
53 -26 = cost
cost = 27
The target cost will be the one that achieves the target profit at the market's selling price. The price of a hairdryer cannot exceed $27 per unit.
In this scenario, the selling price is $53 and we want to make a 26-dollar profit per unit, so the computation is in the following:
[tex]\text{Cost = Revenue - profit}[/tex]
[tex]\text{Profit = Revenue - Cost}\\Cost = 53 -26 \\Cost = 27[/tex]
For more information about target unit cost, refer below
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