Question

Assume that you work for a company that wants to develop aproduct to compete with the kindle. You have been assigned the taskto using target costing to help in its development. do a researchfor kindle product reviews and product specifications and get pricequotes. why would your company's management want to use targetcosting to help in its development of a competitiveebook reader?what retail price would you suggest be used as a basis for targetcosting? assuming a desired profit of 25 percent of selling price,what is the resulting target cost? what actions should the companytake now?