10) What is meant by the term reverse engineer?

11) What is the target operating income per unit? What is the difference in target operating income per unit compared to the target cost per unit?

12) The Cedar Manufacturing Company reported a target cost of $600 per unit of fence material. The existing unit cost is $750. What should the manager do to reach the target cost?

13) Why do managers perform cost analysis to implement cost reduction strategies to target cost reduction?


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