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The Orange Group has been targeting a competitive product to the Apple, IPod.  The product, called the Re-Rind, would allow users to listen to music, like the IPod, but also sync with multiple computers, such as home & office, unlike the IPod.  They want to be perceived as a higher end product & can manufacture the product for $199 in China. They require a forty percent markup after manufacturing cost.  What is the targeted selling price?  The Marketing Department indicates that consumers will pay USD 275 for such a product & tradition says they need a thirty percent cushion [required margin], what will the target cost of manufacture that they can support?  Should they make the Re-Rind & what would you say to them to reconcile the positions?

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