The Management of Featherston, Inc

question 2

Essay

The management of Featherston, Inc., is considering a new product that would have a selling price of $77 per unit and projected sales of 50,000 units. The new product would require an investment of $100,000. The desired return on investment is 20%.
Required:
Determine the target cost per unit for the new product.

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Definitions:

Limited Information

The situation of having insufficient data or knowledge to make fully informed decisions.

Bounded Rationality

A decision strategy that relies on limited information and that reflects time constraints and political considerations.

Bounded Rationality

A theory suggesting that decision-makers are limited by the information they have, their cognitive limitations, and the finite amount of time they have to make a decision.

Time Constraints

The limitations or deadlines imposed on a task or project, influencing its completion.