Basic motor corporation uses target costing

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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 $23,300. 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?

Reference no: EM13775685

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