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Please give me the solution quick!!! Dyson is introducing a new vaccuum cleaner to the market. The COGS to produce one of these vaccuum cleaners
Please give me the solution quick!!!
Dyson is introducing a new vaccuum cleaner to the market. The COGS to produce one of these vaccuum cleaners are 50$. SG&A expenses associated with a single machine are 10$. Production capacity to make 500000 vaccuum cleaners per year cost 50$million(i.e capital expenditures); such capacity is estimated to have a 10 year life.
a. At what price should the company sell the product if it wishes to have an EBIT margin of 20%
B. at what price should it sell the product if it wishes to have a ROIBT of 25%
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