Phoenix, Inc. manufactures widgets. The target sales price is $440 per unit. The company desires a 40% net profit margin on its products. What is the company's target full-product cost per unit using target pricing?
A) $176
B) $616
C) $704
D) $264
D .D)
Target sales price per unit $440
Less: Desired net profit ($440 x 40%) 176
Target cost per unit $264
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