Solved: What is the amount of profit per unit, Managerial Accounting

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What is the amount of profit per unit

Response to the following problem:

Airflow Company sells a product in a competitive marketplace. Market analysis indicates that their product would probably sell at $28.00 per unit. Airflow management desires a profit equal to a 20% rate of return on invested assets of $1,400,000. They anticipate selling 50,000 units. Their current full cost per unit for the product is $25 per unit.

(1) What is the amount of profit per unit?

(2) What is the target cost per unit if they meet the market dictated price and management's desired profit?

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Managerial Accounting: What is the amount of profit per unit

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Managerial Accounting: What is the amount of profit per unit

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