Target Costing
Eastern Auto Supply, Inc., produces and distributes auto supplies. The company is anxious to enter the rapidly growing market for long-life batteries that is based on lithium technology. Management believes that to be fully competitive, the price of the new battery that the company is developing cannot exceed$65. At this price, management is confident that the company can sell 50,000 batteries per year. The batteries would require an investment of $2, 500,000, and the desired ROI is 20%
Required:
Compute the target cost of one battery.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.