The Management of Fanton Corporation Is Considering Introducing a New

question 46

Multiple Choice

The management of Fanton Corporation is considering introducing a new product-a compact lawn blower. At a selling price of $38 per unit, management projects sales of 60,000 units. The lawn blower would require an investment of $500,000. The desired return on investment is 18%.
-The target cost per lawn blower is closest to:

• A) $38.00
• B) $43.07
• C) $44.84
• D) $36.50

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