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Exercise 8-14. Target Costing [LO 4] The product design team at New Time Products is in the process of designing a new clock using target costing.

Exercise 8-14. Target Costing [LO 4]
The product design team at New Time Products is in the process of designing a new clock using target costing. Product features in comparison to competing products suggest a price of $30 per unit. The company requires a profit of 30 percent of selling price.

Required

a. What is the target cost per clock?
b. Suppose it appears that the clocks cannot be manufactured for the target cost. What are some of the options that the company should consider?
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Accounting - 8369000.doc

Exercise 8­14. Target Costing [LO 4] The product design team at New Time Products is in the process of designing a new clock using target costing. Product features in comparison to competing...

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