Hello,

Q-9

Summit Products, Incorporated is interested in producing and selling an improved widget. Market research indicates that customers would be willing to payI $108 for such a widget and that 66,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $62. Summit has learned that a competitor plans to introduce a similar widget at a price of $98. In response, Summit mayr reduce its selling price to $98. If Summit requires a 25% return on sales. what is the target cost for the new widget? Multiple Choice O $93.00 $18.50 O O 52100 O $24.50 The costs of purchasing or manufacturing inventory are called: Multiple Choice O Period costs. O Product costs. O Overhead costs. O Job costs