The Projected Sales Price for a New Product (Which Is

question 140

Multiple Choice

The projected sales price for a new product (which is still in the development stage of the product life cycle) is $50.The company has estimated the life-cycle cost to be $30 and the first-year cost to be $60.On this type of product,the company requires a $12 per unit profit.What is the target cost of the new product?

• A)$30
• B)$38
• C)$42
• D)$60

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Definitions:

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Income earned by holders of import licenses when a government imposes a quota on foreign goods, limiting the quantity that can be imported and creating a market premium for the licenses.

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The highest price a consumer is willing to pay for a good or service, reflecting the value placed on it.