Question: Marigold Company is involved in producing and selling high - end golf equipment. The company has recently been involved in developing various types of laser

Marigold 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, Marigold does not believe that it can charge more than $

93

for LittleLaser. At this price, Marigold believes it can sell

115, 000

of these laser guns. Marigold will require an investment of $

7, 360, 000

to manufacture, and the company wants an ROI of

25 % .

Determine the target cost for one LittleLaser.

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