Question
A manufacturer has invested $750,000 in a new product and wants to set a price to earn a 15 percent ROI. The cost per unit
A manufacturer has invested $750,000 in a new product and wants to set a price to earn a 15 percent ROI. The cost per unit is $18 and the company expects to sell 50,000 units in the first year. Calculate the company's target-return price for this product.
a.$18.10
b.$25.50
c.$20.25
d.$20.70
e.$18.23
Please show the calculation process. Why the answer is $20.25?
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Advertising & IMC Principles & Practice
Authors: Sandra Moriarty, Nancy Mitchell, William Wells
9th Edition
9780132998208, 0132163640, 132998203, 978-0132163644
