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Posted: February 4th, 2023
Jarlsberg Cheese Company has developed a new cheese
Jarlsberg Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell this slicer through its catalog, which it issues monthly. Given market research, Jarlsberg believes that it can charge $20.00 for the Slim Slicer. Prototypes of the Slim Slicer, however, are costing $23. By using cheaper materials and gaining efficiencies in mass production, Jarlsberg believes it can reduce Slim Slicer's cost substantially. Jarlsberg wishes to earn a return of 25% of the selling price. Compute the target cost for the Slim Slicer
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