mosquito mojo is developing a propane powered mosquito zapper for campers 646251

(Target costing; writing) Mosquito MoJo is developing a propane powered mosquito zapper for campers. Market research has indicated that potential purchasers would be willing to pay $145 per unit for this product. Company engineers have estimated that first year production costs will amount to $120 per unit and selling and

administrative expenses will be $20 per unit. On this type of product, Mosquito MoJo would normally expect to earn $15 per unit in profits. Using the concept of target costing, write a memo that (a) analyzes the prospects for this product and (b) discusses possible organizational strategies.