The Exchange Company is in the process of developing a new product called LS500. The company requires a 35% profit. The LS500 current design carries with it a total cost of $125.

A. What is the sales price of the LS500 using markup costing? Round your answer to the nearest cent.

$ ______

B. Assume that the Exchange Company's marketing department has determined that consumers are willing to pay $140 for the LS500. What is the target cost for this product?

$ ______