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An athletic mouth guard manufacturer has invested $500,000 in the business and wants to set a price to earn a 30 percent return on investment.

An athletic mouth guard manufacturer has invested $500,000 in the business and wants to set a price to earn a 30 percent return on investment. The company thinks it can capture 1% of the United States 18 million athletes at a variable unit cost of $2.50 per mouth guard.What would you price the mouthguard at? Would you go higher or lower than this? WHY?

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