Mote Enterprises produces a product with fixed costs of $36,000 and variable cost of $2.50 per unit

| April 14, 2018

Mote Enterprises produces a product with fixed costs of $36,000 and variable cost of $2.50 per unit. The company desires to earn a $20,000 profit and believes it can sell 10,000 units of the product.Requireda. Based on this information, determine the target sales price.b. Assume a competitor is currently selling a similar product for $6.80 per unit. Explain how Mote can use target costing to maintain its desired profitability.

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