Stone Company Is Considering Introducing a New Line of Pagers

question 30

Essay

Stone Company is considering introducing a new line of pagers, targeting the preteen population. Stone believes that if the pagers can be priced competitively at $45, approximately 300,000 units can be sold. The controller has determined that an investment in new equipment totaling $4,000,000 will be required. Stone requires a minimum rate of return of 16% on all investments.
Instructions
Compute the target cost per unit of the pager.

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Definitions:

Self-Management

The ability of an individual to manage their own goals, time, and resources effectively without external supervision.

Performance Results

The outcomes or achievements measured against pre-defined goals or objectives in a business or individual's performance.

Employee Involvement Groups

Organized groups within a company that allow employees to contribute ideas and suggestions for improving the workplace.

Organizational Design

The process of structuring an organization's roles, responsibilities, and relationships to effectively achieve its goals.