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

question 377

Multiple Choice

A new product, an automated crepe maker, is being introduced at Knutt Corporation. At a selling price of $38 per unit, management projects sales of 78,000 units. Launching the crepe maker as a new product would require an investment of $260,000. The desired return on investment is 15%. The target cost per crepe maker is closest to: (Round your answer to 2 decimal places.)

• A) $37.50
• B) $45.42
• C) $45.80
• D) $38.00

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Definitions:

Uniform Commercial Code

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing commercial transactions in the United States, aiming to make business laws more consistent across states.

Rights of First Refusal

A contractual right that gives its holder the option to enter a business transaction with the owner of something, before the owner is entitled to enter into that transaction with a third party.

Disaffirm

The legal right of a party to deny or reject the validity of a contract or agreement.

Trade

The exchange of goods, services, or both between parties, either within a country or between countries, often for money.