The Management of Nerby Corporation Is Considering Introducing a New

Multiple Choice

The management of Nerby Corporation is considering introducing a new product--a compact lawn blower. At a selling price of $28 per unit, management projects sales of 40,000 units. The lawn blower would require an investment of $900,000. The desired return on investment is 20%.
-The target cost per lawn blower is closest to:

A) $28.20
B) $23.50
C) $33.60
D) $28.00