A company has designed a new product (XYZ). It currently estimates that in the current market, the product could be sold for N$70 per unit. A gross profit margin of at least 30% on the selling price would be required, to cover administration and marketing overheads and to make an acceptable level of profit A cost estimation study has produced the following estimate of production cost for XYZ
- The expected cost of Product XYZ.
- the target cost for XYZ.
- the size of the cost gap
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