A small computer manufacturer wants to price its product to earn a return of 60% on equity before interest and taxes. The computer has technological advantages that make management certain they can sell the firm's maximum production of 60,000 units per year at any reasonable price. The variable cost to build and sell a computer is $800, fixed costs are $5,500,000 per year and the firm has $9,000,000 in its equity account.

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The Answer of A small computer manufacturer wants to price its product to earn a return of 60% on equity before interest and taxes. The computer has technological advantages that make management certain they can sell the firm's maximum production of 60,000 units per year at any reasonable price. The variable cost to build and sell a computer is $800, fixed costs are $5,500,000 per year and the firm has $9,000,000 in its equity account.

A Small Computer Manufacturer Wants to Price Its Product to Earn