Sisters, Inc. manufactures professional-level printers that perform multiple features, such as high-resolution color scanning, printing, faxing, and

Question:

Sisters, Inc. manufactures professional-level printers that perform multiple features, such as high-resolution color scanning, printing, faxing, and copying. The new printer model has a target price of $600. Management requires a 20% profit on new product revenues.

Required:

1. Calculate the amount of desired profit.

2. Calculate the target cost.