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:

New Classical

An approach in economics emphasizing rational expectations and market clearing, often associated with a resurgence of classical economic principles.

Macroeconomists

Economists who specialize in studying the overall aspects of economies, including total output, unemployment, inflation, and economic growth.

Arthur Laffer

An economist known for the Laffer Curve, which theorizes there exists an optimal tax rate that maximizes government revenue without discouraging economic activity.

Macroeconomic Theory

A branch of economics that studies the behavior and performance of an economy as a whole, including issues like inflation, unemployment, and national income.