Whispering Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, Jake, just came…

Whispering Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, Jake, just came…

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Whispering Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, Jake, just came up with the idea to sell products in a bundle to provide more options for buyers. Jake’s suggestion
is to sell a bundle of balls (one of each of the four types listed, above) for $59. This represents a savings to the consumer of 15% off regular, individual prices for the items. The company has been operating within its target cost for
all of these products, which have a combined total of $38 per bundle. The proposal includes a target sales volume of 10,000 bundles.
(a)
If Whispering requires an ROI of 20% on its invested assets, what amount of invested assets must the company currently have?
Asset base $ If Whispering recognizes that it will need to invest in at least two new pieces of equipment (at a total cost of $126,000) in the coming year to facilitate this bundling process, what will be the new target cost per unit? (Round
answer to 2 decimal places, e.g. 15.25.)
New target cost per unit
$

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To calculate the amount of invested assets required by Whispering Inc to achieve a 20 ROI we can use
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