Answer:
$80
Explanation:
Brosen incorporation has just designed a new product.
The target cost of the new product is $64
Let y represent the target price
Broken requires the new product to have a profit of 20%
= 20/100 × y
= 0.2×y
= 0.2y
Therefore, the target price can be calculated as follows
Target cost+ Target profit= Target price
64 + 0.2y= y
64= y-0.2y
64= 0.8y
y= 64/0.8
y= 80
Hence the target price for the new product is $80
