Mosquito MoJo is developing a propane-powered mosquito zapper for campers. Market research has indicated that potential purchasers would be willing to pay $145 per unit for this product. Company engineers have estimated that first-year production costs will amount to $120 per unit and selling and administrative expenses will be $20 per unit. On this type of product, Mosquito MoJo would normally expect to earn $15 per unit in profits. Using the concept of target costing, write a memo that
(a) Analyzes the prospects for this product
(b) Discusses possible organizational strategies.