Question: LTF. has developed a stone cookie sheet and plans to sell it for $63 per sheet. Prototypes of the stoneware are costing $46. Management believes

LTF. has developed a stone cookie sheet and plans to sell it for $63 per sheet. Prototypes of the stoneware are costing $46. Management believes Stone Site can reduce the cost substantially and it wants to earn a return of 25% of the selling price.

Determine the target cost per unit that would earn their desired 25% return. ?

If instead they want to earn a 35% return, what would the target cost be?

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