Management of Niemczyk Corporation Is Considering a New Product, an Outdoor

question 295

Essay

Management of Niemczyk Corporation is considering a new product, an outdoor speaker that would have a selling price of $31 per unit and projected sales of 10,000 units. Launching the new product would require an investment of $700,000. The desired return on investment is 16%.Required:Determine the target cost per unit for the outdoor speaker.

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Definitions:

Directly

In a straightforward or straight line manner; without intervening factors or intermediaries.

Marketing Channel

Pathways and processes through which goods and services flow from producers to consumers.

Intermediaries

Entities or individuals that act as middlemen between the producer and the consumer in the distribution process, facilitating transactions and logistics.

Manufacturers

Companies or individuals that produce goods for sale using raw materials and components through various processes.