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Summit Products, Incorporated is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $ 9 4

Summit Products, Incorporated is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $94 for such a widget and that 50,020 units could be sold each year at this price. The current cost to produce the widget is estimated to be $69.
If Summit Products requires a 25% return on sales to undertake production, what is the target cost for the new widget?

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