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Action Toys Has a New Video Game Cassette for the Upcoming

Question 178

Multiple Choice

Action Toys has a new video game cassette for the upcoming holiday season.It is trying to determine the target cost for the game if the selling price per unit will be set at $60,the going price for video games,and the firm wants to earn a target operating income of 15% of sales.What will be the target cost per unit for the new game?


A) $60
B) $51
C) $27
D) $9

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