A New Product, an Automated Crepe Maker, Is Being Introduced

Multiple Choice

A new product, an automated crepe maker, is being introduced at Miyake Corporation. At a selling price of $73 per unit, management projects sales of 20,000 units. Launching the crepe maker as a new product would require an investment of $400,000. The desired return on investment is 17%. The target cost per crepe maker is closest to:

A) $69.60
B) $85.41
C) $81.43
D) $73.00