$**$always show your work for full points$$

$1.$Target Costing, Mountain Top Engineering wishes to invest $$2,000,000$ to design, develop and produce a new tool device for welding. The company$$s Marketing Department surveyed the features and prices of competing products and determined a price of $$30.$ The Company estimates to sell $40,000$ devices per year. Because the company desires a $15\%$ ROI, the target cost to manufacture, sell and distribute should be what? At what unit price? $(\mathrm{.}5$ point$)$

$2.$ Pricing involves a delicate balance act. Higher prices result in more revenue per unit but drive down unit sales. Exactly where to set the prices to maximize profit is a difficult problem. Managers often use Cost$-$Plus Pricing, what is the definition & formula of Cost$-$Plus Pricing? Give two examples of a companies that would use cost$-$plus pricing? $(\mathrm{.}5$ point$)$

$3.$ When you consider a coffee shop on Capitol Hill that has one location, open Tuesday $$ Saturday $5$ days a week, and $890$ square feet and $4$ baristas working five days a week, and one general manager that comes in $3$ times a week, with a sitting capacity of $20$ people and fire code capacity of $50$ people in caf$$ ordering drinks and sitting. Two coffee espresso machines. Open hours $6$am$-6$pm$...$Please list out a minimum of $4$ constraints or bottlenecks for this Coffee shop$(\mathrm{.}25$pt$)$

a$.$ second, what are some solutions for these constraints and bottlenecks? $(\mathrm{.}25$ point total$)$

b$.$ instead of coffee shop lets say it is Travel agency that does trips to South Africa. They do one or two$-$week trips, each trips is required to have $1$ guide per $10$ customers, and customers share in double occupancy hotel rooms, unless they request and pay more for single room. The trip reuires a minimum of $6$ paying customers to run the Tour Group. The Travel Agency Tour guides provide education, transportation, logistics$,$ accommodations and breakfast and dinner, what are some constraints?$$

$4.$ If a product is generating a loss, then it should be discontinued, is this always the case? Do you agree? Or disagree? Explain, in complete sentence $(\mathrm{.}25$ point$)$

$5.$ How will relating a product contribution margins to the amount of the constrained resource they consume help a company maximize its profits? $(\mathrm{.}25$ point$)$

$6.$ A Massachusetts Purse company that makes high$-$end leather bags is considering buying the leather from another country for $$16$ per bag because it is less expensive than making the leather in$-$house for $$20$ per bag, name a minimum of $3$ other factors they should consider besides price in importing the leather from another country to make their bags?? $(\mathrm{.}25$ points$)$