Trout Company is considering introducing a new line of cell phone targeting the preteen population. Trout believes that if the cell phone can be priced competitively at $30, approximately 750,000 units can be sold. The controller has determined that an investment in new equipment totalling $3,750,000 will be required. Trout requires a minimum rate of return of 10% on all investments.

Instructions

Calculate the target cost per unit of the cell phone.