Q11. Summit Products, Incorporated is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $84 for such a widget and that 44,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $54.

Summit has learned that a competitor plans to introduce a similar widget at a price of $74. In response, Summit may reduce its selling price to $74. If Summit requires a 20% return on sales, what is the target cost for the new widget?

Q12.

If 6,000 units were in beginning inventory, 18,000 units were started, and 5,000 units were in the ending inventory, how many units were transferred out?

11 Summit Products, Incorporated is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $84 for such a widget and that 44,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $54. Summit has learned that a competitor plans to introduce a similar widget at a price of $74. In response, Summit may reduce its selling price to $74. If Summit requires a 20% return on sales, what is the target cost for the new widget? Multiple Choice eBook $59.20 $16.80 $74.00 O $14.80 If 6,000 units were in beginning inventory, 18,000 units were started, and 5,000 units were in the ending inventory, how many units were transferred out? 12 Multiple Choice eBook 17,000 units d 18,000 units O 29,000 units O 19,000 units