Ayayai Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course. One small laser gun, called LittleLaser, appears to have a very large potential market. Because of competition, Ayayai does not believe that it can charge more than S80 for Littlelaser. At this price, Ayayai believes it can sell 100,000 of these laser guns. Ayayai will require an investment of S10,000,000 to manufacture, and the company wants an ROI of 15%. Determine the target cost for one Littlelaser. Target cost
Ayayai Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course. One small laser gun, called LittleLaser, appears to have a very large potential market. Because of competition, Ayayai does not believe that it can charge more than S80 for Littlelaser. At this price, Ayayai believes it can sell 100,000 of these laser guns. Ayayai will require an investment of S10,000,000 to manufacture, and the company wants an ROI of 15%. Determine the target cost for one Littlelaser. Target cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ayayai Company is involved in producing and selling high-end golf equipment. The company has
recently been involved in developing various types of laser guns to measure yardages on the golf
course. One small laser gun, called LittleLaser, appears to have a very large potential market.
Because of competition, Ayayai does not believe that it can charge more than $80 for LittleLaser. At
this price, Ayayai believes it can sell 100,000 of these laser guns. Ayayai will require an investment of
$10,000,000 to manufacture, and the company wants an ROI of 15%.
Determine the target cost for one LittleLaser.
Target cost
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