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[The following information applies to the questions displayed below.] Summit Products, Inc. is interested in producing and selling an improved widget, Market research indicates that customers would be willing to pay $90 for such a widget and that 50,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $65. Summit has learned that a competitor plans to introduce a similar widget at a price of $80. In response. Summit may reduce its selling price to $80. If Summit requires a 25% return on sales what is the target cost for the new widget? Select one: o a. $23.75 o b. $20.00 oc. $80.00 d. $60.00