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The projected sales price for a new product (which is still in the development stage of the product life cycle) is P100. The company has estimated the life-cycle cost to be P60 and the first-year cost to be P120. On this type of product, the company requires a P24 per unit profit. What is the target cost of the new product?

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Maurice company has $200 selling price per unit for its product. Variable cost of the product is $150 per product. Its fixed cost is $180,000.

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Yilan Company is considering adding a new product. The cost accountant has provided the following data.

Expected variable cost of manufacturing $ 57 per unit

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The administrative vice president has provided the following estimates.

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Expected annual fixed administrative costs $ 52,000

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. a. If the sales price is set at $110, how many units must Yilan sell to break even?

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Paul and Lucy are starting a new business venture and are in theprocess of evaluating their product lines.

Information for one new product, hand-made lamps, is asfollows:

∙ Every six months a newlamp pattern will be put into production. Each new pattern willrequire $11,000 in setup costs.

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∙ Customer service expensesaverage $16 per lamp.

∙ Current sales are expectedto be 2,000 units of each lamp pattern. Each lamp sells for$250.

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