Basic Motor Corporation uses target costing. Assume that Basic marketing personnel estimate that the competitive...
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Accounting
Basic Motor Corporation uses target costing. Assume that Basic marketing personnel estimate that the competitive selling price for the QuikCar in the upcoming model year will need to be $23,100. Assume further that the QuikCar's total unit cost for the upcoming model year is estimated to be $19,600 and that Basic requires a 20% profit margin on selling price (which is equivalent to a 25% markup on total cost).
a. What price will Basic establish for the QuikCar for the upcoming model year? $
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