How much will they have to cut costs per unit


Flyer Company sells a product in a competitive marketplace. Market analysis indicates that their product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Their current full cost per unit for the product is $44 per unit.If the company meets the new target cost number, how much will they have to cut costs per unit, if any?

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Accounting Basics: How much will they have to cut costs per unit
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