Bond Co Is Using the Target Cost Approach on a New

Multiple Choice

Bond Co. is using the target cost approach on a new product. Information gathered so far reveals: $$\begin{array} { l l } \text { Expected annual sales } & 400,000 \text { units } \\\text { Desired profit per unit } & \$ 0.35 \\\text { Target cost } & \$ 168,000\end{array}$$ What is the target selling price per unit?

A) $0.42
B) $0.70
C) $0.35
D) $0.77