Question: help pls Crane Designs makes various accessories for pets. Their trademark product, PetBed, is perceived to be high quality but not extravagant, and is sold

help pls help pls Crane Designs makes various accessories for pets. Their trademark product,

Crane 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, Kimberly Young, 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," Kimberly claims. "We won't compete with our existing product. It's win-win!" PetBeds sell for $ 180 each. Kimberly estimates the gross margin at $ 60. After working with production engineers and the marketing research team, Kimberly has designed a bed that she believes the new market segment will purchase $ 420 for. The production engineers and accountants believe it will cost about $ 180 to make. (a) Your answer is incorrect If Crane Designs uses cost-plus pricing and prices most products like the original Pet Bed, what should be the price of the high-end Pet Bed? (Round answer to O decimal places, e.g. 25,000.) per bed Price of the high-end PetBed

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!