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MC Question 2

The selling price of Product X is set at $550 for each unit and sales for the coming year are expected to be 800 units.

A return of 30% on the investment of $500,000 in Product X will be required in the coming year.

What is the target cost for each unit of Product X?

A. $385·00
B. $165·00
C. $187·50
D. $362·50