Respuesta :
Answer:
The target-full cost per unit is $420 as shown below
Explanation:
The fact that the company desires to have 30% net profit margin implies that the profit element is 30% of sales price and that the target-full cost per unit using target pricing is selling price minus net profit per unit or that the target cost is 70% of target sales price
As a result, the target full-product per unit using target pricing is shown below:
Target sales price per unit $600
net profit margin (30%*$600) ($180)
target-full product cost per unit $420
Also it could be calculated as (100%-30%) * $600=$420
In other words, the two approaches give the same target-full cost per unit of widget in Everly Drew Inc
