Price
= Target cost / (1 - Gross margin)
= 26.95 / (1 - .3)
= 26.95 / .7
= 38.5
Hence, $38.5 is the correct answer.
Michelle Industries has conducted market research which indicates customers are interested in purchasing its new product....
please help me answer this by 8pm today. thank you!! Kimberly Industries has conducted market research which indicates customers are interested in purchasing its new product. Kimberly requires a 40% gross margin on all new products. The production supervisor has been directed to produce this product at its target cost of $28.30 per unit. What is the price customers are willing to pay for this new product (if necessary, round your answer)? O $39.62 O $67.92 O $47.26 o $45.28
Summit Products, Inc. is interested in producing and selling an improved widget Market research indicates that customers would be willing to pay $96 for such a widget and that 56,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $58. Summit Products requires a 25% return on sales to undertake production, what is the target cost for the new widget? Multiple Choice O $24.00 o $7.00
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