Question
Amazon.com, Inc. is on the brink of introducing a cutting-edge electronic device into the market. As part of the strategic planning process, the management is
Amazon.com, Inc. is on the brink of introducing a cutting-edge electronic device into the market. As part of the strategic planning process, the management is keen to establish the target cost to achieve a desirable profit margin. The desired profit margin has been set at 25% of the total sales revenue. With variable costs projected at $200 per unit and fixed costs estimated at $15,000,000, compute the target cost per unit. Subsequently, devise an effective pricing strategy that not only ensures profitability but also maintains competitiveness within the dynamic market landscape.
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