Consider the following questions:
1. What are the two types of pricing environments for sales to external parties?
2. In what situation does a company place the greatest focus on its target cost? How is the target cost determined?
3. What is the basic formula to determine the target sell- ing price in cost-plus pricing?
4. Benz Corporation produces a filter that has a per unit cost of $18. The company would like a 30% markup. Using cost-plus pricing, determine the per unit selling price.