19 Innerspace, Inc. produces drones. The market research department at Innerspace, Inc., gets an idea to market the drone technology, which is a small computer, to the auto industry for use in self-driving cars. Because of the riskiness of the venture, Innerspace, Inc, requires an operating margin 40 percent (operating margin equals revenues minus manufacturing costs). The competitors of Innerspace, Inc, market a similar small computer for a price of $458. The manufacturing department at Innerspace, Inc., estimates for following manufacturing costs for the small computer to be installed in self-driving cars. 8 02:10-18 Slipped $200 88 Book Direct materials Direct labor Manufacturing overhead Total 72 $360 Required: a. Suppose Innerspace uses cost-plus pricing, setting the price to manufacturing costs plus 40 percent of manufacturing costs. What price should it charge for the computer? b. Suppose Innerspace uses target costing. What is the highest acceptable manufacturing cost for which Innerspace would be willing produce to the small computer? Complete this question by entering your answers in the tabs below. Required A Required B Suppose Innerspace uses cost-plus pricing, setting the price to manufacturing costs plus 40 percent of manufacturing a 19 Direct materials Direct labor Manufacturing overhead Total $200 88 72 $360 8 02:09:57 Skipped Required: a. Suppose Innerspace uses cost-plus pricing, setting the price to manufacturing costs plus 40 percent of manufacturing costs. What price should it charge for the computer? b. Suppose Innerspace uses target costing. What is the highest acceptable manufacturing cost for which Innerspace would be willing produce to the small computer? Book Complete this question by entering your answers in the tabs below. Required A Required B Suppose Innerspace uses cost-plus pricing, setting the price to manufacturing costs plus 40 percent of manu What price should it charge for the lomputer? (Round your answer to 2 decimal places.) Cost plus price Required A Required B > Help Save & Exit Submit 19 Direct materials Direct labor Manufacturing overhead Total $200 88 72 5360 02:09:41 Skipped Required: a. Suppose Innerspace uses cost-plus pricing, setting the price to manufacturing costs plus 40 percent of manufacturing costs. What price should it charge for the computer? b. Suppose Innerspace uses target costing, What is the highest acceptable manufacturing cost for which Innerspace would be willing produce to the small computer? Book Complete this question by entering your answers in the tabs below. Required A Required B Suppose Innerspace uses target costing. What is the highest acceptable manufacturing cost for which Innerspace woul willing produce to the small computer? (Round your answer to 2 decimal places.) Highest acceptable cost