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1. Trout Company is considering introducing a new line of pagers

1. Trout Company is considering introducing a new line of pagers

1. Trout Company is considering introducing a new line of pagers targeting the preteen population. Trout believes that if the pagers can be priced competitively at
$45, approximately 500,000 units can be sold. The controller has determined that an investment in new equipment totaling $4,000,000 will be required. Trout
requires a minimum rate of return of 14% on all investments. Instructions: Compute the target cost per unit of the pager. Show your calculations to receive credit
for your answer.

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