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1 Determine target cost. D9.12 (LO 1) Clear Water is considering introducing a water filtration...

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Accounting

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1 Determine target cost. D9.12 (LO 1) Clear Water is considering introducing a water filtration device for its one-litre water bottles. Market research indicates that 1 million units can be sold if the price is no more than $3. If Clear Water decides to produce the filters, it will need to invest $2 million in new production equipment. Clear Water requires a minimum rate of return of 18% on all investments. Instructions Determine the target cost per unit for the filter

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