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Pete's Puzzle Company explores the market for new puzzles with over 1,000 pieces and determines that there is a market niche in which it can sell puzzles at $ 25 each. The Company estimates that it could sell 12,200 puzzles per year. The cost to produce a puzzle is expected to be $12 per puzzle. Questions: 1. If Pete's Puzzle Company uses target costing and expects a profit of $15 per construction set what is the target cost per puzzle? Show your work. (5 points) 2. An outside vendor offers to sell 6,000 puzzles to Pete's Puzzle Company at a cost of $10 per puzzle? If Pete's Puzzle Company's management uses incremental analysis, what factors should management consider in deciding whether to purchase 6,000 of the puzzles from the outside vendor? List five relevant factors that management should consider. (5 points)