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Target price is subtracted from per unit target operating income to...

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Management Accounting
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Target price is subtracted from per unit target operating income to calculate

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Correct Answer: Option D
Target price is subtracted from per unit target operating income to calculate target cost per unit. The target cost of a product is the expected selling price of the product minus the desired profit from selling it. In other words, target cost is really a measure of how low costs need to be to make a certain profit.
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