Problem 5: Pricing: #78-80 Adidas AG of Germany is developing a new basketball show with Donovan Mitchell of the Utah Jazz Management believes that in order to be competitive in world markets, the price of a pair of shows that the company is developing cannot exceed $95. Adidas's required rate of return is 10% on all investments. An investment of $3,600,000 would be required to purchase the equipment needed to develop and produce the 30,000 shoes that management believes can be sold each year at the $95/pair selling price. Question 78 (1.25 points) Compute the target cost of one pair of the new basketball shoe: $83/pair $65/pair $59/pair $80/pair none of these Question 79 (1.25 points) (Ignore information provided above) Management is also considering using a cost plus pricing approach for the new shoes. Management estimates that the cost per pair of new shoe could be $75. If this is the case and company policy is to markup the price 60%, determine the selling price of the new shoe per pair: $81/pair none of these $120/pair $135/pair O $45/pair (Ignore information provided above) Alternatively, assume that management decides to use a pricing approach with the intent to earn a target level of gross profit. They estimate that the cost/pair of the new shoe is $60 (ignore selling and administrative costs) and decide to price the shoes at a level to earn 33.3333% gross profit. What should the price of the shoes be? $80.00 Onone of these. O $90.00 $180.00 $93.33