Question - Collins Corporation uses target costing and sells a product for $50 per unit. The company seeks a profit margin equal to 40% of sales. If target-costing calculations revealed a need for a $5 cost reduction, the firm's current manufacturing cost must be:
A. $20.
B. $25.
C. $30.
D. $35.
E. some other amount.
Can you please show your work? Thanks!