Question: Justin Allen, a product engineer for L'Oso Gaming, is designing a new electronic game. Market research indicates that gamers will pay $36 for the game.

Justin Allen, a product engineer for L'Oso Gaming, is designing a new electronic game. Market research indicates that gamers will pay $36 for the game.

Required

a. If L'Oso desires a 60% markup on production costs, what is the target cost for the new game?
b. Justin believes it will cost $24 per unit to produce the new game. What actions should he take next?

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