Frick N’ Frack Company plans to sell 5,000 units of a new product at a price of $35 per unit. The cost to bring the product to market, including design and development, is $155,000. The desired return on investment (ROI) is 15%.

Required:

Calculate the target cost per unit the company must achieve to ensure it attains its desired ROI. Given the above information, what are Frick N’ Frack Company’s choices?