Let's see how we determine the target cost.
{"Image DocumentName": "Let\u2019s see how we determine the target cost.", "Image ImageDescription": "Target Costing. Handy Appliance feels there is a niche for a hand mixer with special features. The marketing department believes that a price of  30 would be about right and that about 40,000 mixers could be sold. An investment of  2 million is required to gear up for production. The company requires a 15% ROI on invested funds. Let\u2019s see how we determine the target cost. Let\u2019s look at a specific example of target costing at Handy Appliance. The marketing department believes a new mixer selling for  30 per unit would be able to carve out about 40,000 units from the existing market. It will cost Handy  2 million to gear up for production. Handy Appliance requires a 15 percent return on its investment.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}