1. Flagler Electronics currently sells a camera for $410. An aggressive competitor has announced plans for a similar product that will be sold for $290. Flagler's marketing department believes that if the price is dropped to meet competition, unit sales will increase by 10%. The current cost to manufacture and distribute the camera is $260, and Flagler has a profit goal of 35% of sales. If Flagler meets competitive selling prices, what is the company's target cost?

a. $266.50.

b.$101.50.

c.$260.00.

d.$143.50.

e.$188.50.

2. The following data pertain to Laramie Enterprises:

Variable manufacturing cost	$60
Variable selling and administrative cost	$10
Applied fixed manufacturing cost	$30
Allocated fixed selling and administrative cost	$5

What price will the company charge if the firm uses cost-plus pricing based on total cost and a markup percentage of 40%?

a. $63.

b.$175.

c.$147.

d.$168.

3. Charlene Company, which desires to enter the market with a new product, will perform the following tasks:

1Design and engineer the product.

2Determine the product's cost.

3Determine the desired profit margin.

4Determine the suggested selling price.

If Charlene uses target costing, which task would the company perform first?

a.1

b.2

c.3

d.4