The Design Engineer's Preliminary Estimate of a Product's Design,production,and Distribution

Multiple Choice

The design engineer's preliminary estimate of a product's design,production,and distribution costs is $1,550 per unit.Market research shows potential customers are willing to pay up to $1,989 for the product.If the desired profit is 40 percent of target cost,should the company make the product?

A) No,the market price only allows for a 28% profit at this cost.
B) Yes,with only slight modifications to cost.
C) Yes,the desired costs and profit are right on target.
D) Yes,the market price will allow for a profit that exceeds the target.