Sports Fanatics, Inc. is interested in selling Tampa Bay Buccaneers NFL logo key rings. Market research indicates that that 10,000 units can be sold if the price is no more than $8 per key ring, due to its Superbowl win last year. If Sports Fanatics, Inc. decides to produce the key rings, it will need to invest $200,000 in new production equipment. If Sports Fanatics, Inc. desires to earn a minimum rate of return of 15%, what is the target cost for each key ring?

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The Answer of Sports Fanatics, Inc. is interested in selling Tampa Bay Buccaneers NFL logo key rings. Market research indicates that that 10,000 units can be sold if the price is no more than $8 per key ring, due to its Superbowl win last year. If Sports Fanatics, Inc. decides to produce the key rings, it will need to invest $200,000 in new production equipment. If Sports Fanatics, Inc. desires to earn a minimum rate of return of 15%, what is the target cost for each key ring?