Question: Question 8: Target return price (TRP) is designed to cover all costs and yield a specified or target return. The metric for the TRP is

Question 8: Target return price (TRP) is designed

Question 8: Target return price (TRP) is designed to cover all costs and yield a specified or target return. The metric for the TRP is as follow: RXI TRP = C , +1 US Whereas: TRP = target return price Cou = cost per unit R = expected return | = capital invested US = unit sales Assume you are building a new perfume with the below financial specifications. Cost per unit = $ 25 Investment = $3,000,000 Unit sales = $100,000 Return = 35 % Calculate the target return price (TRP)

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