Nash Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, Jake, just came up with the idea to sell products in a bundle to provide more options for buyers. Jake's suggestion is to sell a bundle of balls (one of each of the four types listed, above) for $58. This represents a savings to the consumer of 15% off regular, individual prices for the items. The company has been operating within its target cost for all of these products, which have a combined total of $33 per bundle. The proposal includes a target sales volume of 10,000 bundles. (a) Your answer is correct. If Nash requires an ROI of 20% on its invested assets, what amount of invested assets must the company currently have? Asset base $ 1250000
Nash Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, Jake, just came up with the idea to sell products in a bundle to provide more options for buyers. Jake's suggestion is to sell a bundle of balls (one of each of the four types listed, above) for $58. This represents a savings to the consumer of 15% off regular, individual prices for the items. The company has been operating within its target cost for all of these products, which have a combined total of $33 per bundle. The proposal includes a target sales volume of 10,000 bundles. (a) Your answer is correct. If Nash requires an ROI of 20% on its invested assets, what amount of invested assets must the company currently have? Asset base $ 1250000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nash Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, Jake, just came up
with the idea to sell products in a bundle to provide more options for buyers. Jake's suggestion is to sell a bundle of balls (one of
each of the four types listed, above) for $58. This represents a savings to the consumer of 15% off regular, individual prices for
the items. The company has been operating within its target cost for all of these products, which have a combined total of $33 per
bundle. The proposal includes a target sales volume of 10,000 bundles.
(a)
Your answer is correct.
If Nash requires an ROI of 20% on its invested assets, what amount of invested assets must the company currently have?
Asset base
1250000
Transcribed Image Text:If Nash recognizes that it will need to invest in at least two new pieces of equipment (at a total cost of $123,000) in the
coming year to facilitate this bundling process, what will be the new target cost per unit? (Round answer to 2 decimal places,
e.g. 15.25.)
New target cost per unit
$
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