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The Exchange Company is in the process of developing a new product called LS500. The company requires a 35% profit. The LS500 current design carries with it a total cost of $125.
A. What is the sales price of the LS500 using markup costing? Round your answer to the nearest cent.
$ ______
B. Assume that the Exchange Company's marketing department has determined that consumers are willing to pay $140 for the LS500. What is the target cost for this product?
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