What price should the company set

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Reference no: EM131971750

Problem

Rockwell company is considering launching a new product. Expected production and sales in units equals 10,000. At that level of sales the manufacturing cost is expected to be $96/unit. The project will require an initial investment of $2,000,000 and management requires a 10% return on investment. Related annual selling and administrative costs are expected to be $500,000 per year. Given these estimates, what price should the company set?

Reference no: EM131971750

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