3.27, sorry it's on multiple pages so I cropped them on my computer to try and help. If you have any questions let me know, thank you!!!

a. If L'Oso desires a 140% markup on production costs, what is the target cost IOF le Liew Sure b. Justin believes it will cost $12 per unit to produce the new game. What actions should he take next? 3.27 (LO 6, 7) Cost-plus pricing, target costing Pet Designs makes various accessories for pets. Their trademark product, PetBed, is perceived to be high quality but not extravagant, and is sold in a variety of pet stores. Wanda Foster, marketing manager, has convinced her boss that they are missing an important segment of the market. "We can increase the quality of the material and design and market PetBed to a higher-end clientele," Wanda claims. "We won't compete with our existing product. It's win-win!" PetBeds sell for $60 each. Wanda estimates the gross margin at $20. After working with production engineers and the marketing research team, Wanda has designed a bed that she believes the new market segment will purchase at a price of $88. The production engineers and accountants believe it will cost about $60 to make. Required a. If Pet Designs uses cost-plus pricing and prices most products like the original PetBed, what should be the price of the high-end PetBed? b. If Pet Designs wants to preserve the existing gross margin percentage, what is the target cost at a market price of $727 c. Based on your answers to (a) and (b), what are Pet Designs' alternatives