MicroStorage Technology (MST) is developing a high-speed modem to connect handheld computers Problem 13.44 with a satellite-based data network. Cost Reduction

{LO 4)

Required

a. Given the following information, compute MST’s cost-reduction target.

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b. If MST believes it can reduce the cost of the modem by no more than 18 percent, is this a feasible product for MST? Why or why not?