A New Product, an Automated Crepe Maker, Is Being Introduced

question 34

Multiple Choice

A new product, an automated crepe maker, is being introduced at Boorman Corporation. At a selling price of $72 per unit, management projects sales of 20,000 units. Launching the crepe maker as a new product would require an investment of $700,000. The desired return on investment is 14%. The target cost per crepe maker is closest to:

• A) $72.00
• B) $82.08
• C) $76.49
• D) $67.10

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