The market price for low-end laser printers is well established at $400 per unit.ABC Technologies is considering entering this market and has enough available space in its plant to accommodate a new production line.However, several pieces of new manufacturing equipment would be required which are estimated to cost $28,000,000.ABC Technologies requires a minimum ROI of 15% on any product line investment and estimate that it can capture 100,000 units of the low-end laser printer market at the prevailing market price.
(a.)Calculate the target cost per unit for ABC Technologies if it is to enter the low-end laser printer market while earning the minimum 15% ROI.

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The Answer of The market price for low-end laser printers is well established at $400 per unit.ABC Technologies is considering entering this market and has enough available space in its plant to accommodate a new production line.However, several pieces of new manufacturing equipment would be required which are estimated to cost $28,000,000.ABC Technologies requires a minimum ROI of 15% on any product line investment and estimate that it can capture 100,000 units of the low-end laser printer market at the prevailing market price.
(a.)Calculate the target cost per unit for ABC Technologies if it is to enter the low-end laser printer market while earning the minimum 15% ROI.

The Market Price for Low-End Laser Printers Is Well Established