Posted: May 17th, 2017

Refer to the information above. Summit has learned that a competitor plans to introduce a similar widget at a price of $80.

Refer to the information above. Summit has learned that a competitor plans to introduce a similar widget at a price of $80. In response, Summit may reduce its selling price to $80. If Summit requires a 25% return on sales, what is the target cost for the new widget?

A. $80.00.

B. $60.00.

C. $23.75.

D. $20.00.
80 x .25= 20.0
80-20= 60.00