|
Summit Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $84 for such a widget and that 44,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $54 |
| If Summit Products requires a 20% return on sales to undertake production, what is the target cost for the new widget? |
| Some other amount. | |
| $64.00. | |
| $67.20. | |
| $73.20. |