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denis23 [38]
3 years ago
9

Comdex Inc. manufactures parts for the telecom industry. One of its products that currently sells for $210 is now facing a new c

ompetitor that offers the same product for $190. The parts currently cost Comdex $180. Comdex believes it must reduce its price to $190 to remain competitive. What is the target cost of the product if Comdex desires a 30% profit on sales dollars?
Business
1 answer:
strojnjashka [21]3 years ago
3 0

Answer:

$147

Explanation:

The computation of the target cost of the product if the desired prodit percentage is considered

Given that

Currently sale price = $210

New competitor price = $190

Currently cost = $180

Reduced price = $190

Profit percentage is 30%

So the target cost of the product is

= Sale price - desired profit

= $210 - $210 × 30%

= $210 - $63

= $147

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