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

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Definitions:

Mislaid

Property that is intentionally placed somewhere and then forgotten by the owner.

Abandoned

Something or someone that is abandoned has been left behind or given up on, often leading to a state of neglect or disuse.

Lost

Unable to find one's way; not knowing one's whereabouts.

Common Carriers

Entities that offer transportation services to the public under the regulation of governmental authority.