Turtle Inc. has developed a new and improved widget. The company plans to sell the product through an existing website. Turtle’s marketing department believes the product will sell for $80. Turtle’s goal is a 40 percent profit margin on the widget.

Required:

1. If current prototypes cost $49.50 to produce, will Turtle meet its profit goal?

2. Calculate the target cost necessary for Turtle to earn 40 percent profit.

3. Suggest at least three areas that Turtle might investigate to find ways to cut the prototype cost enough to meet the target profit for this product.