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

Multiple Choice

A new product, an automated crepe maker, is being introduced at Boorman Corporation. At a selling price of $72 per unit, management projects sales of 20,000 units. Launching the crepe maker as a new product would require an investment of $700,000. The desired return on investment is 14%. The target cost per crepe maker is closest to:

A) $72.00
B) $82.08
C) $76.49
D) $67.10