Home Products, Incorporated, Is Planning the Introduction of a New

Multiple Choice

Home Products, Incorporated, is planning the introduction of a new food dryer. To compete effectively, the dryer would have to be priced at no more than $40 per unit. An investment of $600,000 would have to be made in order to produce and sell the new dryer. The company requires a return on investment of at least 25% on new products. Assuming that the company expects to produce and sell 30,000 dryers per year, the target cost per dryer would be closest to:

A) $18.00
B) $35.00
C) $20.00
D) $24.67