Super Appliance Manufacrures(SAM) produces and markets a range of small domestic appliances. although there is a wide range of toasters already in the market, SAM is considering introducing a new model with certain special features. Based on competitive models, the marketing Department expects that the maximum price at which the new product ca n be sold is 400, at which price they expect that 3 000 of the toasters cold be sold per year. Development costs for the new range are estimated to be R1 Million, new equipment required would cost R200 000, and average working would be R300 000. SAM projects its future return on capital invested to be 20% and requires that new product should not reduce this.

Calculate the target cost of each toaster in Rand.