1-Value-added and non-value-added activities Explain the distinction between value-added and non-value added activities. Provide an example of each.

2-Target costing

Ray-Dee, Inc. is considering the introduction of a new deluxe quality stereo tabletop radio. This radio will produce exceptional sound quality through new speaker technology. Market research indicates that customers would be willing to pay $400 for a radio of the quality considered. Ray-Dee requires a 30% return on sales for all its products.

Required: Compute Ray-Dee's target cost for the radio under consideration.