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Loyola International, Inc

question 32

Essay

Loyola International, Inc. is considering adding a portable CD player to its product line. Management believes that in order to be competitive, the CD player cannot be priced above $79. The company requires a minimum return of 20% on its investments. Launching the new product would require an investment of $20,000,000. Sales are expected to be 250,000 units of the CD player per year.
Required:
Compute the target cost of a CD player.

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Definitions:

Technology Analyses

The systematic evaluation of the technical aspects, applications, implications, and impacts of technology in society.

Digital Sociality

A social landscape in which new communication technologies are promoting human interaction and contact.

Communication Technologies

The various methodologies and tools used for the exchange of information over distances, such as the internet, mobile phones, and social media platforms.

Human Interaction

The dynamic, evolving exchange and communication between individuals or groups, influencing and shaping social structures and relationships.

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