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Elkert Goft Equipment

Price: $1.99

Eckert Company is involved in producing and selling high-end golf equipment. The
company has recently been involved in developing various types of laser guns to measure
yardages on the golf course. One small laser gun, called LittleLaser, appears to have a
very large potential market. Because of competition, Eckert does not believe that it can
charge more than $90 for LittleLaser. At this price, Eckert believes it can sell 100,000 of
these laser guns. Eckert will require an investment of $8,000,000 to manufacture, and the
company wants an ROI of 20%.

Determine the target cost for one LittleLaser.

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