Question

Nemesis Company manufactures water skis. Nemesis pursues a target pricing strategy. Please review the data below:

Current market price $180 per pair

Current manufacturing cost $110 per pair

Current non-manufacturing cost $25 per pair

Desired profit 30% of price

Which of the following represents the target cost?

A) $126

B) $180

C) $110

D) $135

Answer

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