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Determine the target cost per unit for the filter

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Reference no: EM132514677

Question 1: Waterway Water is considering introducing a water filtration device for its 20-ounce water bottles. Market research indicates that 1,000,000 units can be sold if the price is no more than $4. If Waterway Water decides to produce the filters, it will need to invest $2,000,000 in new production equipment. Waterway Water requires a minimum rate of return of 18% on all investments. Determine the target cost per unit for the filter.

Reference no: EM132514677

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