E8-2 LasikLook is involved in producing and selling high-end golf equipment. T

E8-2
LasikLook 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 LittleLasik appears to have a very large potential market.
Because of competition LasikLook does not believe that it can charge
more than $90 for LittleLasik. At this price LasikLook believes it can
sell 100000 of these laser guns. LittleLasik will cost $8500000 to
manufacture and the company wants an ROI of 20%.Determine the target cost for one LittleLasik.