ch12-AFM102s2012

The company requires a 15 roi production the company

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Unformatted text preview: t cost. Managerial Accounting 12-52 Target Costing Projected sales ( 40,000 units × $30 ) Desired profit ( $2,000,000 × 15% ) Target cost for 40,000 mixers $ 1,200,000 300,000 $ 900,000 Target cost per mixer ( $900,000 ÷ 40,000 ) $ 22.50 Each functional area within Handy Appliance would be responsible for keeping its actual costs within the target established for that area. Managerial Accounting 12-53 End of Chapter 12 Managerial Accounting...
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