Green Lawn Corporation Wants to Produce a New Lawnmower 1
Through Reverse Engineering, Green Lawn Found a Design Improvement

Multiple Choice

Green Lawn Corporation wants to produce a new lawnmower. The financial data is as follows:
Other information:
$\begin{array}{lr}\text { Target price: } & \$ 450 \\\text { Target profit: } & \$ 75 \\\text { Estimated cost given current product and process designs: } & \$ 400\end{array}$ 1.
Through reverse engineering, Green Lawn found a design improvement that would save $10 per unit.
2.
It also found that it could purchase a similar component of a different brand at a lower price, which would save $20 per unit.
-Refer to the Figure.What is Green Lawn's target cost?

A) $225
B) $275
C) $300
D) $375