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Question(s) / Instruction(s):

Larry Cable Inc. plans to introduce a new product and is using the target cost approach.  Projected sales revenue is $810,000 ($4.50 per unit) and target costs are $748,800.  What is the desired profit per unit?

A.            $0.34

B.            $2.08

C.            $4.16

D.            None of the above

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