Please help 911 (20 pts) Memphis Electrical makes small electric motors....
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Please help 911
(20 pts) Memphis Electrical makes small electric motors. The market research department indicates that a small motor for garage door openers would sell for $26. A similar motor currently produced has the following costs: 5. $13 Direct materials Direct labor Overhead Total 27 The company wants a gross margin of 20% of the manufacturing costs. a) Suppose Memphis used cost-plus pricing, setting the price 20% above manufacturing costs. What price would be charged for the motor? Would you produce such a motor? b) Suppose Memphis used target costing. What is the highest acceptable manufacturing cost for which Memphis would be willing to produce the motor
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