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If target-costing calculations revealed a need for a 5 cost

Question - Collins Corporation uses target costing and sells a product for $50 per unit. The company seeks a profit margin equal to 40% of sales. If target-costing calculations revealed a need for a $5 cost reduction, the firm's current manufacturing cost must be:

A. $20.

B. $25.

C. $30.

D. $35.

E. some other amount.

Can you please show your work? Thanks!

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Accounting Basics: If target-costing calculations revealed a need for a 5 cost

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Accounting Basics: If target-costing calculations revealed a need for a 5 cost

Reference No:- TGS02857198

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