Determine Target Cost for Cream

It is now May 1, 2023

Cream will be sold starting in 2024,

Selling price should be no more than $10 per pound

Sales are likely to be 500 ponds per month at each retail store and will be sold year round

Last year, in December 2022, were purchased for $225,000 to be used to manufacture the cream

Machines will be replaced after 5 years of use

Cost of 25,000 were incurred to install the kettles

A specialized table for use in manufacturing will need to be purchased for cooling the cream 30,000

A refrigerator unit will need to be purchased to storage at $20,000 by the end of 2023

The return on investment is 15%