Wenner Corporation Would Like to Use Target Costing for a New

Multiple Choice

Wenner Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $44 per unit, management projects sales of 10,000 units. The new product would require an investment of $900,000. The desired return on investment is 10%.The target cost per unit is closest to:

A) $44.00
B) $38.50
C) $48.40
D) $35.00