[The Following Information Applies to the Questions Displayed Below

question 49

Multiple Choice

[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.
-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

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Definitions:

Prostate Gland

A gland in the male reproductive system that surrounds part of the urethra and produces a fluid that forms part of semen.

Seminal Vesicle

Glands that produce a significant portion of the fluid that becomes part of semen, which nourishes and helps transport sperm.

Impotence

A disorder in which a male cannot maintain an erect penis to complete sexual intercourse; also called erectile dysfunction.

Pap Smears

A procedure that collects cells from the cervix to test for cervical cancer, precancerous conditions, or other cervical abnormalities.