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Management of Delaune Corporation Is Considering a New Product, an Outdoor

Question 55

Essay

Management of Delaune Corporation is considering a new product, an outdoor speaker that would have a selling price of $45 per unit and projected sales of 70,000 units. Launching the new product would require an investment of $200,000. The desired return on investment is 12%.
Required:
Determine the target cost per unit for the outdoor speaker.

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