[The following information applies to the questions displayed below.]
Summit Products,Inc.is interested in producing and selling an improved widget.Market research indicates that customers would be willing to pay $90 for such a widget and that 50,000 units could be sold each year at this price.The current cost to produce the widget is estimated to be $65.
-If Summit Products requires a 25% return on sales to undertake production,what is the target cost for the new widget?
A)$65.00
B)$67.50
C)$80.00
D)$81.25

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The Answer of [The following information applies to the questions displayed below.]
Summit Products,Inc.is interested in producing and selling an improved widget.Market research indicates that customers would be willing to pay $90 for such a widget and that 50,000 units could be sold each year at this price.The current cost to produce the widget is estimated to be $65.
-If Summit Products requires a 25% return on sales to undertake production,what is the target cost for the new widget?
A)$65.00
B)$67.50
C)$80.00
D)$81.25

[The Following Information Applies to the Questions Displayed Below