[The Following Information Applies to the Questions Displayed Below

Multiple Choice

[The following information applies to the questions displayed below.]
Summit Products,Inc.is interested in producing and selling an improved widget.Market research indicates that customers would be willing to pay $90 for such a widget and that 50,000 units could be sold each year at this price.The current cost to produce the widget is estimated to be $65.
-If Summit Products requires a 25% return on sales to undertake production,what is the target cost for the new widget?

A) $65.00
B) $67.50
C) $80.00
D) $81.25