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Goal Costing

Oregon Tools Firm needs to develop a brand new log-splitting machine for rural owners.

Market analysis has decided that the corporate might promote 5,000 log-splitting machines per 12 months at a retail worth of $700 every. An unbiased catalog firm would deal with gross sales for an annual charge of $three,000 plus $40 per unit offered. The price of the uncooked supplies required to provide the log-splitting machines quantities to $90 per unit.

If firm administration needs a return equal to 10 % of the ultimate promoting worth, what's the goal conversion and administrative value per unit? Spherical reply to the closest cent. $Get accounting project homework assist