Indigo Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell
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Indigo Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell this slicer through its online website. Given market research, Indigo believes that it can charge $40 for the Slim Slicer. Prototypes of the Slim Slicer, however, are costing $42. By using cheaper materials and gaining efficiencies in mass production, Indigo believes it can reduce Slim Slicer's cost substantially. Indigo wishes to earn a return of 30% of the selling price.
(a) Required: Compute the target cost for the Slim Slicer.
Target cost | $enter the target cost in dollars |
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ISBN: 978-1119036432
7th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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