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Shimada Products Corporation of Japan plans to introduce a new electronic component to the market...

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Accounting

Shimada Products Corporation of Japan plans to introduce a new electronic component to the market at a target selling price of $15 per unit. The company is investing $10,800,000 to purchase the equipment it needs to produce and sell 432,000 units per year. Its required rate of return on all investments is 12%.

Required:

Compute the components target cost per unit.

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