A New Product,an Automated Crepe Maker,is Being Introduced at Laguna

question 66

Multiple Choice

A new product,an automated crepe maker,is being introduced at Laguna Corporation.At a selling price of $52 per unit,management projects sales of 90,000 units.Launching the crepe maker as a new product would require an investment of $200,000.The desired return on investment is 15%.The target cost per crepe maker is closest to:

• A)$59.80
• B)$52.00
• C)$59.42
• D)$51.67

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Definitions:

Regression Analysis

A statistical method for modeling the relationship between a dependent variable and one or more independent variables.

Independent Variables

Variables in an experiment or model that are manipulated or controlled by the researcher to investigate their effect on dependent variables.

Dependent Variables

Variables in an experiment or model that are expected to change in response to changes in independent variables.

Intercept

In the context of a regression line, it is the expected value of the dependent variable when all independent variables are zero.