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Compute the target-selling price assuming that a 45% markup on total per unit cost. Trout Company is considering introducing a new line of pagers targeting
Compute the target-selling price assuming that a 45% markup on total per unit cost.
- 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.
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