Home Products, Incorporated, Is Planning the Introduction of a New

question 55

Multiple Choice

Home Products, Incorporated, is planning the introduction of a new food dryer. To compete effectively, the dryer would have to be priced at no more than $40 per unit. An investment of $600,000 would have to be made in order to produce and sell the new dryer. The company requires a return on investment of at least 25% on new products. Assuming that the company expects to produce and sell 30,000 dryers per year, the target cost per dryer would be closest to:

• A) $18.00
• B) $35.00
• C) $20.00
• D) $24.67

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Definitions:

Oral Hygiene

Condition or practice of maintaining the tissues and structures of the mouth.

Oral Airway

A medical device used to maintain or open a patient’s airway to ensure sufficient air exchange.

Peripheral Vascular Disease

A circulatory condition characterized by narrowed blood vessels outside the heart and brain, often affecting the limbs.

CHG Solution

Chlorhexidine Gluconate solution, an antiseptic used for cleaning skin before surgery or injections to prevent infection.