Dear tutor, kindly show the working step by step , so that could easier to understand. tqManagement accounting question GMS Company would like to use target costing for a new product that is under consideration. At aselling price of RM84 per unit, management estimates sales of 40,000 units. The new product wouldrequire an investment of RM400,000. The desired return on investment is 11%.Required: Determine the target cost per unit for the new product.Kindly provide the workings clearly.

Total Target profit Cost of investment * Desired rate of return RM400000 * 11% = RM44000…

Answered: e target cost per unit for the new…

Business

Accounting

e target cost per unit for the new product.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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