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Vaughn Manufacturing wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2

Vaughn Manufacturing wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2 per 12 oz. bottle. The following data has been collected:

Annual sales 50000 bottles
Projected selling and administrative costs $7600
Desired profit $80000

The target cost per bottle is

$0.60.

$0.25.

$0.15.

$0.40.

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