Galla Inc. operates in a highly competitive market where the market price for its product...
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Accounting
Galla Inc. operates in a highly competitive market where the market price for its product is $178 per unit. Galla desires a $24 profit per unit. Galla expects to sell 5,800 units. Additional information is as follows:
| Variable product cost per unit | $ | 18 | |
| Variable administrative cost per unit | 13 | ||
| Total fixed overhead | 53,000 | ||
| Total fixed administrative | 26,000 | ||
Using target costing, what is the target cost?
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