Business, 17.06.2021 15:30 meramera50

EagleEye Company, a manufacturer of digital cameras, is considering entry into the digital binocular market. EagleEye Company currently does not produce binoculars of any style, so this venture would require a careful analysis of relevant manufacturing costs to correctly assess its ability to compete. The market price for this binocular style is well established at $134 per unit. EagleEye has enough square footage in its plant to accommodate the new production line, although several pieces of new equipment would be required; their estimated cost is $4,850,000. EagleEye requires a minimum ROI of 11% on any product line investment and estimates that if it enters this market with its digital binocular product at the prevailing market price, it is confident of its ability to sell 27,000 units each year. Calculate the target cost per unit for entry into the digital binocular market.

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EagleEye Company, a manufacturer of digital cameras, is considering entry into the digital binocular...

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