Management of Daubert Corporation Is Considering a New Product, an Outdoor

question 33

Essay

Management of Daubert Corporation is considering a new product, an outdoor speaker that would have a selling price of $43 per unit and projected sales of 60,000 units. Launching the new product would require an investment of $300,000. The desired return on investment is 13%.
Required:
Determine the target cost per unit for the outdoor speaker.

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Definitions:

Hours Worked

The total number of hours spent by employees performing tasks as part of their employment.

Decreased

Decreased indicates a reduction in size, quantity, quality, or intensity of a specific variable or condition.

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs produced to inputs used within a certain period.

Increasing Rate

A situation where a numerical value or quantity grows over a period of time, which can refer to things like interest rates or inflation.