A New Product, an Automated Crepe Maker, Is Being Introduced

question 47

Multiple Choice

A new product, an automated crepe maker, is being introduced at Knutt Corporation. At a selling price of $59 per unit, management projects sales of 70,000 units. Launching the crepe maker as a new product would require an investment of $500,000. The desired return on investment is 12%. The target cost per crepe maker is closest to:

• A) $59.00
• B) $66.08
• C) $58.14
• D) $65.12

---

Definitions:

Physicists

Scientists who specialize in the study of matter, energy, and the interactions between them.

Slope

In mathematics, it's the measure of the steepness or the angle of a line, defined as the ratio of the vertical change to the horizontal change.

Price

The monetary value attached to the purchase of a good or service.

Quantity

The quantity of a tangible or intangible product or service.