The selling price of product Zigma is set to be $250 for each unit and sales for the coming year are expected to be 500 units. If the company requires a return of 15% in the coming year on its investment of $250,000 in product Zigma, the target cost for each unit for the coming year is
A、$145
B、$155
C、$165
D、$175
A、$145
B、$155
C、$165
D、$175
【参考答案及解析】
Sales revenue 500 units @ $250 $125,000 Return on investment required 15% × $250,000 $37,500 Total cost allowed $87.500 Target cost per unit $175
Sales revenue 500 units @ $250 $125,000 Return on investment required 15% × $250,000 $37,500 Total cost allowed $87.500 Target cost per unit $175