Question

Shear-it, Inc., produces paper shredders. Shear-it is considering a new shredder design for home offices. The marketing vice president believes that a basic unit in a variety of attractive colors could be sold for $70. Shear-it requires that all new products yield 30% profit. What is the target cost of the new shredder?

Answer 1

$49

Step-by-step explanation:

Desired Profit = 0.3 x $70 =&21

Target cost = $70 - $21 = $49