A new product requires an investment of $200,000 in machinery and working capital. The total sales volume over the product's life will be 5,000 units. The forecast costs per unit throughout the product's life are as follows: The product is required to earn a return on investment of 35%. What unit selling price needs to be achieved?
A) $54.00
B) $50.77
C) $47.00
D) $44.55

Question

A new product requires an investment of $200,000 in machinery and working capital. The total sales volume over the product's life will be 5,000 units. The forecast costs per unit throughout the product's life are as follows:  The product is required to earn a return on investment of 35%. What unit selling price needs to be achieved?
A) $54.00 
B) $50.77 
C) $47.00 
D) $44.55

Quizplus · Accepted Answer

The Answer of A new product requires an investment of $200,000 in machinery and working capital. The total sales volume over the product's life will be 5,000 units. The forecast costs per unit throughout the product's life are as follows:  The product is required to earn a return on investment of 35%. What unit selling price needs to be achieved?
A) $54.00 
B) $50.77 
C) $47.00 
D) $44.55

A New Product Requires an Investment of $200,000 in Machinery