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9. Trout Company is considering introducing a new line of pagers targeting the preteen population. Trout believes that if the pagers can be priced competitively
9. Trout Company is considering introducing a new line of pagers targeting the preteen population. Trout believes that if the pagers can be priced competitively at $45, approximately 500,000 units can be sold. The controller has determined that an investment in new equipment totaling $4,000,000 will be required. Trout requires a minimum rate of return of 14% on all investments. Instructions Compute the target cost per unit of the pager. 10. Rita Corporation produces commercial fertilizer spreaders. The following information is available for Rita's anticipated annual volume of 400,000 units. The company has a desired ROI of 25%. It has invested assets of $144,000,000. Instructions Compute each of the following: 1. Total cost per unit. 2. Desired ROI per unit. 3. Target selling price
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