MBI, Inc., had sales of $ 35 million for fiscal 2013. The company's gross profit ratio for that year was 20%.
a. Calculate the gross profit and cost of goods sold for MBI, Inc., for fiscal 2013. (Enter your answer in millions to two decimal places. (i.e., 5,500,000 should be entered as 5.50))
b. Assume that a new product is developed and that it will cost $455 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2013. (Round your answer to 2 decimal places.)
c. From a management viewpoint, it could use the estimated selling price as a "target" in conducting marketing research studies to assess its ultimate prospects for success at this price