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(Appendix 12a)straus Company,a Manufacturer of Electronic Products,wants to Introduce a New

Question 56
Multiple Choice

(Appendix 12A)Straus Company,a manufacturer of electronic products,wants to introduce a new calculator.To compete effectively,the calculator could not be priced at more than $40.The company requires a 20% rate of return on investment on all new products.In order to produce and sell 30,000 calculators each year,the company would have to make an investment of $850,000.What would be the target cost per calculator? A) $16.50. B) $23.50. C) $28.33. D) $34.33.

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Q 57
(Appendix 12A)Timax Company,a manufacturer of moderately priced time pieces,would like to introduce a new electronic watch into the market.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.What would be the target cost per watch? A) $25.00. B) $39.00. C) $43.75. D) $64.00.
Q 58
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Q 59
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