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A new product, an automated crepe maker, is being introduced at Knutt Corporation. At a selling price of $36 per unit, management projects sales of 76,000 units. Launching the crepe maker as a new product would require an investment of $240,000. The desired return on investment is 13%. The target cost per crepe maker is closest to:

Respuesta :

Answer: 35.49

Explanation:

The projected sales will be:

= $76,000 × $36

= $2,736,000

The desired return on the investment will be calculated as the Investment multiplied by the desired return rate. This will be:

= $240,000 × 16%

= $240,000 × 0.16

=$38,400

The total target cost will now be:

= $2,736,000 - $38,400

= $2,697,600

The The target cost per crepe maker is closest to:

= $2,697,600/$76,000

= 35.49

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