Silver Moon Boutique sells a line of sterling silver jewelry.On average, Silver Moon earns a 60% gross profit on its jewelry.The owner, Pat Harring, wants to add some pewter jewelry to the boutique's offerings.Pat has found a supplier who sells pewter necklaces for $35 each.However, she believes that her customers won't pay more than $50 for pewter jewelry.
Required:
a.What price would Silver Moon normally charge for a pewter necklace?
b.What is the target cost Silver Moon would need to meet to sell the pewter necklaces for $50?
c.What could Silver Moon do to meet the target cost in part b?

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The Answer of Silver Moon Boutique sells a line of sterling silver jewelry.On average, Silver Moon earns a 60% gross profit on its jewelry.The owner, Pat Harring, wants to add some pewter jewelry to the boutique's offerings.Pat has found a supplier who sells pewter necklaces for $35 each.However, she believes that her customers won't pay more than $50 for pewter jewelry.
Required:
a.What price would Silver Moon normally charge for a pewter necklace?
b.What is the target cost Silver Moon would need to meet to sell the pewter necklaces for $50?
c.What could Silver Moon do to meet the target cost in part b?

Silver Moon Boutique Sells a Line of Sterling Silver Jewelry