Problem
The starlight GPx, made up spotlight Optical gear co, is a waterproof, rechargeable, ultra-bright flashlight for outdoor enthusiasts. key features include multiple light and charging modes, a waterproof casing made of aircraft aluminum, and built in GPS.
Spottily would like to sell its GPx flashlight online to avoid retail markup. the company has hired you to determine the target manufacturing cost per unit.
expected first year sales 160,000 units
proposed sales price $70
online selling fee, per unit 0.80
additional selling fee of $80000 per 40,000 units sold
shipping fee per pallet 2200
flashlights in each pallet 1000
research & development 720000
marketing costs 224000
social media fees, per click 0.03
estimated # of clicks 5600000
legal & corporate fees 392000
required target profit 14%
What is the target manufacturing cost per unit?