Assume that a company plans to introduce a new product to the market at a target selling price of $20 per unit. It is investing $4,000,000 to purchase the equipment needed to produce the product. The company has determined that the new products target cost per unit is $17.76. if the companys required rate of return on all investments is 14%, what must be its estimated annual sales volume for the new product?

Multiple Choice

• 215,000 units

• 225,000 units

• 250,000 units

• 275,000 units