The marketing department at Hi- Fi Electronics has determined that there is a demand for a new small appliance which would likely sell for $36. Hi- Fi Electronics currently produces a similar product for $38, using a full cost approach. Hi- Fi Electronics would like to earn a 20% profit on the new appliance. The target cost of the new appliance is:

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The Answer of The marketing department at Hi- Fi Electronics has determined that there is a demand for a new small appliance which would likely sell for $36. Hi- Fi Electronics currently produces a similar product for $38, using a full cost approach. Hi- Fi Electronics would like to earn a 20% profit on the new appliance. The target cost of the new appliance is:

The Marketing Department at Hi- Fi Electronics Has Determined That