PNY Currently Sells Its Primary Product for $85 Per Unit

Multiple Choice

PNY currently sells its primary product for $85 per unit, with a profit margin of 30%. Cost of goods sold totals 40% of the product's total cost. PNY's managers are considering implementing a kaizen costing system. If PNY is successful in achieving its kaizen goal, the reduced nonmanufacturing cost (i.e., the cost excluding the product cost) per unit will be:

A) $28.56
B) $19.04
C) $47.60
D) $20.40