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Unformatted text preview: required return to computer company is 10% of its cost from Timberland required return to Timberland is 15% of its highest net selling price 11.1 = (15%) 9.9 = (10%) **must equal target cost Target Cost to Current Cost Ratio Must be Calculated and used to compute target cost $110 - 11.1-9.9 = 89- 25 = 64...
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This note was uploaded on 11/25/2011 for the course ACT 5060 taught by Professor Debroahpendarvis during the Fall '08 term at Nova Southeastern University.
- Fall '08
- Managerial Accounting