Aldot Candy Corporation Is Implementing a Target Costing Approach for Its

Multiple Choice

Aldot Candy Corporation is implementing a target costing approach for its latest new product,the "Big Glob" candy bar.The following information relates to the Big Glob: Based on this information,what is Aldot's target selling price per bar for the Big Glob?
$\begin{array}{lr}\text { Target cost per candy bar ................................ } & \$ 0.40 \\\text { Expected annual sales (in units) of candy bars ...... } & 500,000 \\\text { Required investment in additional assets .............. } & \$ 600,000 \\\text { Desired return on investment ......................... } & 20 \%\end{array}$

A) $0.48
B) $0.50
C) $0.64
D) $0.70