Calcutron Company is contemplating introducing a new type ofcalculator to comple

Question

Calcutron Company is contemplating introducing a new type ofcalculator to complement its existing line of scienticcalculators. The target price of the calculator is $75,annual sales volume of the new calculator is expected to be 500,000units. Calcutron has a 15% return on sales target.
a. Compute the unit target cost percalculator. Calcutron Company is contemplating introducing a new type ofcalculator to complement its existing line of scienticcalculators. The target price of the calculator is $75,annual sales volume of the new calculator is expected to be 500,000units. Calcutron has a 15% return on sales target.
a. Compute the unit target cost percalculator.

Explanation / Answer

Sales = 500,000 * 75 = $37,500,000

37,500,00 / 5,625,000 = $11.25/unit

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