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Calculate abc target cost based on the information provided

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Reference no: EM132581160

Question 1: ABC Inc. wishes to enter a highly competitive market, and studies have determined that products in this industry nearly all sell for $20 per unit. ABC estimates that it can produce and sell 500,000 units annually. ABC uses operating assets valued $40 million and desires a return on these assets of 15%. Calculate ABC's target cost based on the information provided.

Option a) $8

Option b) $20

Option c) $30

Option d) $14

Reference no: EM132581160

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