Sheridan Look produces and sells high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure distances on the golf course. The potential market for one small laser gun, the LittleSheridan, appears to be very large. Because of competition, Sheridan Look does not believe that it can charge more than $85 for LittleSheridan. At this price, Sheridan Look believes it can sell 100,000 laser guns. LittleSheridan will cost $9,740,000 to manufacture, and the company wants an ROI of 25% Determine the target cost for one LittleSheridan. (Round answer to 2 decimal places, e.g. 15.25.) Target cost $ 8:35
Sheridan Look produces and sells high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure distances on the golf course. The potential market for one small laser gun, the LittleSheridan, appears to be very large. Because of competition, Sheridan Look does not believe that it can charge more than $85 for LittleSheridan. At this price, Sheridan Look believes it can sell 100,000 laser guns. LittleSheridan will cost $9,740,000 to manufacture, and the company wants an ROI of 25% Determine the target cost for one LittleSheridan. (Round answer to 2 decimal places, e.g. 15.25.) Target cost $ 8:35
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Sheridan Look produces and sells high-end golf equipment. The company has recently been involved in developing various types of
laser guns to measure distances on the golf course. The potential market for one small laser gun, the LittleSheridan, appears to be very
large. Because of competition, Sheridan Look does not believe that it can charge more than $85 for LittleSheridan. At this price,
Sheridan Look believes it can sell 100,000 laser guns. LittleSheridan will cost $9,740,000 to manufacture, and the company wants an
ROI of 25%
Determine the target cost for one LittleSheridan. (Round answer to 2 decimal places, e.g. 15.25.)
Target cost
$
8:35
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