Question

Yuhu manufactures cell phones and is developing a new model with a feature (aptly named Don't Drink and Dial) that prevents the phone from dialing an owner-defined list of phone numbers between the hours of midnight and 6:00 a.m. The new phone model has a target price of $330. Management requires a 10% profit on new product revenues. Required: If required, round to the nearest dollar. 1. Calculate the amount of desired profit. $ 2. Calculate the target cost. $

Answer 1

Instructions are listed below.

Step-by-step explanation:

Giving the following information:

The new phone model has a target price of $330. Management requires a 10% profit on new product revenues.

1) Calculate the amount of desired profit:

Profit= 330*0.10= $33

2) Calculate the target cost

Target cost= 330 - 33= $297