Spot-On Wants to Begin Manufacturing and Selling a New Product

question 33

Multiple Choice

Spot-On wants to begin manufacturing and selling a new product, the Sporty Spot.Spot-On requires a 25% gross margin on all new products.Marketing research indicates customers are interested in purchasing the Sporty Spot.If the production supervisor has agreed to produce the Sporty Spot at its target cost of $6.75 per unit, what is the price customers are willing to pay for the Sporty Spot (if necessary, round your answer) ?

• A)$5.40
• B)$27.00
• C)$8.44
• D)$9.00

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Definitions:

Cycads

Slow-growing, palm-like plants from the order Cycadales, known for their large compound leaves and production of cones.

Seedless Vascular Plants

Plants that have vascular tissue for transporting water and nutrients but reproduce through spores rather than seeds.

Sporophytes

The diploid generation in the life cycle of plants that produces spores through meiosis, alternates with the haploid gametophyte stage.

Gametophytes

The sexual phase in the life cycle of plants and algae that produce gametes, or sex cells.