Exercise 3-8A Target costing LO 3-2 The marketing manager of Campbel Corporation has determined that a market exists for a telephone with a sales price of $23 per unit. The production manager...

Extracted text: Exercise 3-8A Target costing LO 3-2 The marketing manager of Campbel Corporation has determined that a market exists for a telephone with a sales price of $23 per unit. The production manager estimates the annual fixed costs of producing between 40,300 and 80,100 telephones would be $524,600. Required Assume that Campbell desires to earn a $125,000 profit from the phone sales. How much can Campbell afford to spend on variable cost per unit if production and sales equal 46,400 phones? Varable cost per unit