Clear water is considering introducing a water filtration

Reference no: EM13599571

Clear Water is considering introducing a water filtration device for its 20-ounce water bottles. Market research indicates that 1,082,600 units can be sold if the price is no more than $4. If Clear Water decides to produce the filters, it will need to invest $2,020,300 in new production equipment. Clear Water requires a minimum rate of return of 23% on all investments.

Determine the target cost per unit for the filter.

Reference no: EM13599571

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