\begin{tabular}{l} Classic Toys has examined the market for toy train locomotives. It believes there is a \ market niche in which it can sell locomotives at $$ \$ 80 $$ each. It estimates that it could \ sell 10,000 of these locomotives annually. Variable costs to make the locomotive are \ expected to be $$ \$ 25 $$. Classic anticipates a profit of $$ \$ 15 $$ per locomotive. The target \ cost for the locomotive is: \ $$ \begin{array}{l} ext { (\$80 } \$ 65 \ ext { \$25 }\end{array} $$ \ \hline\end{tabular}

Question

\begin{tabular}{l} Classic Toys has examined the market for toy train locomotives. It believes there is a \ market niche in which it can sell locomotives at $$ \$ 80 $$ each. It estimates that it could \ sell 10,000 of these locomotives annually. Variable costs to make the locomotive are \ expected to be $$ \$ 25 $$. Classic anticipates a profit of $$ \$ 15 $$ per locomotive. The target \ cost for the locomotive is: \ $$ \begin{array}{l}	ext { (\$80 } \$ 65 \ 	ext { \$25 }\end{array} $$ \ \hline\end{tabular}

UpStudy AI · Accepted Answer

The selling price is $$ \$80 $$ per locomotive. Classic Toys anticipates a profit of $$ \$15 $$ per unit. The target cost is the selling price less the desired profit. Thus, we calculate the target cost as follows:

$$
\text{Target Cost} = \text{Selling Price} - \text{Profit} = 80 - 15 = 65
$$

So, the target cost for the locomotive is $$ \$65 $$.
The target cost for the locomotive is \$65.

Solución de inteligencia artificial de Upstudy

Responder

Solución

The Deep Dive

preguntas relacionadas

Latest Economics Questions