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4 July, 20:09

Mesa Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell this slicer through its catalog, which it issues monthly. Given market research, Mesa believes that it can charge $20 for the Slim Slicer. Prototypes of the Slim Slicer, however, are costing $22. By using cheaper materials and gaining efficiencies in mass production, Mesa believes it can reduce Slim Slicer's cost substantially. Mesa wishes to earn a return of 40% of the selling price. (a) Compute the target cost for the Slim Slicer. (Round answer to 2 decimal places, e. g. 10.50.)

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  1. 4 July, 20:23
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    Target Cost $12

    Explanation:

    Target Sales Price 20

    Gross Mark up 20 * 40% (-8)

    Target Cost $12

    To calculate the target cost is necessary to rest the gross mark up to the target sales price.
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