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Business, 18.03.2021 01:40 wannamakerdaandre

Ace Co. is evaluating a new novelty product that would sell for $30 per unit and have the following costs: Variable manufacturing $20 per unit Variable selling and distribution $4 per unit Fixed manufacturing $100,000 per year Product design and development $80,000 total The product is expected to have a market life of one year, at the end of which all production and sales would be discontinued. Ace has a target rate of return on sales of 0.10. How many units must Ace sell to earn the target rate of return?

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