Palermo Primping Products is contemplating introducing a new type of deluxe eye cream to complement its existing line of products. The following information applies.

Target price $25 per unit

Estimated annual target sales volume 60,000

Expected return on sales target 35%

R&D to develop the deluxe product is expected to be $1,500,00

A. Compute the unit target cost per unit.

B. Compute Break Even Time for the deluxe eye cream