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Columbus Inc. sells a high end hair dryer in a super competitive marketplace. As a result, market research and competitive pressures influence the determination of their selling price. Their marketing department has done a comprehensive analysis and It looks like a price of $62 would be appropriate given the present business environment. The company has a goal of earning $32 on each unit. What is the target unit cost of each hair dryer

Sagot :

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Answer:

Target unitary cost= $30

Explanation:

Giving the following information:

Selling price= $62 per unit

Desired profit= $32 per unit

To calculate the target unitary cost, we need to use the following formula:

Target unitary cost= selling price - desired profit

Target unitary cost= 62 - 32

Target unitary cost= $30

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