Mattson Company is involved in producing and selling high-end golf equipment. The company has recently been involved
Question:
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, Mattson does not believe that it can charge more than $90 for LittleLaser. At this price, Mattson believes it can sell 100,000 of these laser guns. Mattson will require an investment of $8,500,000 to manufacture, and the company wants an ROI of 20%.
Instructions
Determine the target cost for one LittleLaser.
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Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-0470477144
5th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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