J-Time, Inc is planning to launch a new brand of watches for kids
Similar watches are available in the market for $58. In order to penetrate the market, the company plans to use target pricing and desires a 22% net profit markup on total cost. Calculate the target cost. (Round your answer to the nearest cent.)
A) $70.76
B) $12.76
C) $47.54
D) $45.24
C .C)
Let target cost be x
Target cost = Target sales price - Desired profit
x = $58 - 0.22x
1.22x = $58
x = $58 / 1.22
x = $47.54
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