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What is the target cost for the new razor

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Reference no: EM132911306

Question - Superior Products, Inc. is interested in producing and selling a deluxe electric razor. Market research indicates that customers would be willing to pay $80 for such a razor and that 40,000 units could be sold each year at this price. The current cost to produce the razor is estimated to be $68.

If Superior Products requires a 20% return on sales to undertake production, what is the target cost for the new razor?

a) $16

b) $64

c) $54.40

d) $68

Reference no: EM132911306

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