Samples Corporation Would Like to Use Target Costing for a New

Multiple Choice

Samples Corporation would like to use target costing for a new product it is considering introducing.At a selling price of $21 per unit, management projects sales of 20, 000 units.The new product would require an investment of $400, 000.The desired return on investment is 12%. The target cost per unit is closest to:

A) $21.00
B) $18.60
C) $23.52
D) $20.83