Timax Corporation, a Manufacturer of Moderate-Priced Time Pieces, Would Like

question 82

Multiple Choice

Timax Corporation, a manufacturer of moderate-priced time pieces, would like to introduce a new electronic watch. To compete effectively, the watch could not be priced at more than $50. The company requires a return on investment of 25% on all new products. The plan is to produce and sell 20,000 watches each year. This would require a $500,000 investment. The target cost per watch would be:

• A)$64.00
• B)$25.00
• C)$43.75
• D)$39.00

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Definitions:

Direct Contact

A situation or method of transmission where physical touch or immediate proximity facilitates the exchange or spread of substances or information.

Vicarious Conditioning

Learning that occurs through observing the behavior and outcomes of others, rather than through direct experience.

Observational Learning

A learning process through which behaviors are acquired by watching and imitating the actions of others.

Peripheral-Route

A method of persuasion that relies on cues outside of the message content itself, like the attractiveness or credibility of the source.