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What is target cost

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Question - Tom Gilgen is considering the production of a new line of jeans, Base on Preliminary market research, management the decided that each pair of jeans should be priced at $170. Furthermore, management believes that the profit margin should be 25 percent of sales revenue.

What is target cost?

A) $127.50

B) $62.00

C) $112.00

D) $95.75

Reference no: EM132082202

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