E8.2 (LO 1), AP Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been in in developing various types of laser guns to measure yardages on the golf course. One small laser gun, called Little Laser, appears to have a very large potential market. Because of competition, Eckert does not believe that it can charge more than $90 for LittleLaser. At this price, Eckert believes it can sell 100,000 of these laser guns. Eckert will require an investment of $8,000,000 to manufacture, and the company wants an ROI of 20%. Instructions Determine the target cost for one Little Laser.

E8.2 (LO 1), AP Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been in in developing various types of laser guns to measure yardages on the golf course. One small laser gun, called Little Laser, appears to have a very large potential market. Because of competition, Eckert does not believe that it can charge more than $90 for LittleLaser. At this price, Eckert believes it can sell 100,000 of these laser guns. Eckert will require an investment of $8,000,000 to manufacture, and the company wants an ROI of 20%. Instructions Determine the target cost for one Little Laser.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Current Attempt in Progress Culver 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, Culver does not believe that it can charge more than $94 for LittleLaser. At this price, Culver believes it can sell 112,000 of these laser guns. Culver will require an investment of $8,400,000 to manufacture, and the company wants an ROI of 24%. Determine the target cost for one LittleLaser. Target cost $