Summit Products, Incorporated is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $104 for such a widget and that 62,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $60. Summit has learned that a competitor plans to introduce a similar widget at a price of $94. In response, Summit may reduce its selling price to $94. If Summit requires a 15% return on sales, what is the target cost for the new widget

"jake’s roof repair has provided the following data concerning its costs: fixed cost per month cost per repair-hour wages and salaries $ 20,900 $ 15.00 parts and supplies $ 7.70 equipment depreciation $ 2,800 $ 0.35 truck operating expenses $ 5,720 $ 1.60 rent $ 4,690 administrative expenses $ 3,850 $ 0.50 for example, wages and salaries should be $20,900 plus $15.00 per repair-hour. the company expected to work 2,600 repair-hours in may, but actually worked 2,500 repair-hours. the company expects its sales to be $47.00 per repair-hour. required: compute the company’s activity variances for may."