Essay
Nissan uses target costing. Assume that the company expects the market selling price for a compact sedan model is going to be $27,000 for the upcoming year and expects to sell 5,000 of this model. If Nissan has invested assets of $100,000,000 with a ROI required of 12%, what is the target cost for a Nissan compact sedan model for the upcoming year?
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Target Cost Per Unit = $24,600, ROI per ...View Answer
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