The Management of Brockington Corporation Is Considering Introducing a New

Multiple Choice

The management of Brockington Corporation is considering introducing a new product--a compact barbecue. At a selling price of $80 per unit, management projects sales of 70,000 units. Launching the barbecue as a new product would require an investment of $400,000. The desired return on investment is 15%. The target cost per barbecue is closest to:

A) $79.14
B) $92.00
C) $91.01
D) $80.00