Ask Question
21 December, 13:18

Ortega Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a computer hard drive is $76. Ortega would like a profit of $13 per drive. What target cost Ortega should set to accomplish this objective?

+5
Answers (1)
  1. 21 December, 15:11
    0
    The correct answer is $63.

    Explanation:

    According to the scenario, the computation of the given data are as follows:

    So, we can calculate the target cost to accomplish the objective by using following formula:

    Target cost = Market price - Profit

    Where, Market price = $76

    Profit = $13

    By putting the value in the formula, we get

    Target cost = $76 - $13

    = $63
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Ortega Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a computer ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers