(Click the icon to view the categories.) Read the requirements. Requirement 1. What is the...
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Accounting

(Click the icon to view the categories.) Read the requirements. Requirement 1. What is the estimated cost per unit for TheraDry? Determine the formula, then compute the estimated cost per unit. (Abbreviation used: oper. = operating.) Requirement 2. What is the range of prices that TheraDry could charge to make a profit? To make a profit, TheraDry could charge between and Requirement 3. Assume that TheraDry's target operating income per unit is $172. What is the target cost for the dryer? Determine the formula, then compute the target cost per unit for the dryer. Requirement 4 . What can the company do to achieve its target cost calculated in requirement 3 ? [ [ Requirement 5 . Should the target cost calculated in requirement 3 include all costs (direct, and variable and fixed overhead)? Why or why not? Target costs should include , because in the long run a company's prices and revenues must exceed its total costs if it is to remain in business. For managers should only consider costs that vary in the short run. Data table
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