A new product, an automated crepe maker, is being introduced at Knutt Corporation. At a selling price of $59 per unit, management projects sales of 70,000 units. Launching the crepe maker as a new product would require an investment of $500,000. The desired return on investment is 12%. The target cost per crepe maker is closest to: A. $59.00 B. $65.12 C. $58.14 D. $66.08

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A new product, an automated crepe maker, is being introduced at Knutt
Corporation. At a selling price of $59 per unit, management projects sales of
70,000 units. Launching the crepe maker as a new product would require an
investment of $500,000. The desired return on investment is 12%. The target
cost per crepe maker is closest to:
A. $59.00
B. $65.12
C. $58.14
D. $66.08
Transcribed Image Text:A new product, an automated crepe maker, is being introduced at Knutt Corporation. At a selling price of $59 per unit, management projects sales of 70,000 units. Launching the crepe maker as a new product would require an investment of $500,000. The desired return on investment is 12%. The target cost per crepe maker is closest to: A. $59.00 B. $65.12 C. $58.14 D. $66.08
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