Sheffield Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell this slicer through its catalog, which it issues monthly. Given market research, Sheffield believes that it can charge $30 for the Slim Slicer. Prototypes of the Slim Slicer, however, are costing $31. By using cheaper materials and gaining efficiencies in mass production, Sheffield believes it can reduce Slim Slicer's cost substantially. Sheffield wishes to earn a return of 40% of the selling price. Required:.
Compute the target cost for the Slim Slicer. (Round answer to 2 decimal places, e. g. 10.50.)
Target cost $