utensil. The firm has conducted significant market research and estimated the following pattern for sales of the new product: Year Expected Volume Expected Price per Unit 1 48,000 units $19 2 48,000 units $20 3 90,000 units $16 4 40,000 units $12 If the firm desires to net $3.50 per unit in profit over the life of the product, and selling and administrative expenses are expected to average $50,000 per year, what is the target cost to produce the new utensil?
utensil. The firm has conducted significant market research and estimated the following pattern for sales of the new product: Year Expected Volume Expected Price per Unit 1 48,000 units $19 2 48,000 units $20 3 90,000 units $16 4 40,000 units $12 If the firm desires to net $3.50 per unit in profit over the life of the product, and selling and administrative expenses are expected to average $50,000 per year, what is the target cost to produce the new utensil?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section: Chapter Questions
Problem 59P
Related questions
Question
Utah Utensil has developed a new kitchen
utensil. The firm has conducted significant
Year Expected Volume Expected Price per Unit
1 48,000 units $19
2 48,000 units $20
3 90,000 units $16
4 40,000 units $12
If the firm desires to net $3.50 per unit in profit over the life of the product, and selling and administrative expenses are expected to average $50,000 per year, what is the target cost to produce the new utensil?
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