Utah Utensil has developed a new kitchen utensil. The firm has conducted significant market research and estimated the following pattern for sales of the new product:

If the firm desires to net $3.50 per unit in profit over the life of the product, and selling and administrative expenses are expected to average $50,000 per year, what is the target cost to produce the newutensil?

Transcribed Image Text:

Expected Volume 48,000 units 48,000 units 90,000 units 40,000 units Expected Price per Unit $19 20 16 12 Year