E9.17(LO 1)Lasik Look produces and sells high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure distances on the golf course. The potential market for one small laser gun, the LittleLasik, appears to be very large. Because of competition, Lasik Look does not believe that it can charge more than $90 for LittleLasik. At this price, Lasik Look believes it can sell 100,000 laser guns. LittleLasik will cost $8 million to manufacture, and the company wants an ROI of 20%.

Calculate target cost.Instructions

Determine the target cost for one LittleLasik.