Galla IncOperates in a Highly Competitive Market Where the Market Price

Galla Inc.operates in a highly competitive market where the market price for its product is $170 per unit.Galla desires a $15 profit per unit.Galla expects to sell 5,000 units.Additional information is as follows: $$\begin{array}{l}\begin{array} { l l r } \text { Variable product cost per unit}&\$15\\\text { Variable administrative cost per unit}&10\\\text { Total fixed overhead}&45,000\\\text { Total fixed administrative}&18,000\end{array}\end{array}$$ Using target costing,what is the target cost?

A) $135.00
B) $160.00
C) $130.00
D) $145.00
E) $155.00

Correct Answer:

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