Your neighbor is building a new house on the vacant lot next door. The carpenter saw your lemonade stand and asked you about supplying him and his helpers with lemonades during the six weeks that they will be working on the site. He offers to pay you $1 per lemonade for ten lemonades per day. You have previously determined that is costs you 90 cents to make each lemonade. If you need a 20 percent gross margin, what new cost (target cost)

would be needed to accomplish that?

A. 90 cents B. 80 cents C. 20 cents D. 10 cents