How much can fanning afford to spend on variable cost

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Question - Target costing - The marketing manager of Fanning Corporation has determined that a market exists for a telephone with a sales price of $19 per unit. The production manager estimates the annual fixed costs of producing between 41,700 and 80,500 telephones would be $346,000. Assume that Fanning desires to earn a $126,000 profit from the phone sales. How much can Fanning afford to spend on variable cost per unit if production and sales equal 47,200 phones?

Reference no: EM133126037

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