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Riverbed Water is considering introducing a water filtration device for its 20-ounce water bottles. Market...

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Accounting

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Riverbed Water is considering introducing a water filtration device for its 20-ounce water bottles. Market research indicates that 1,000,000 units can be sold if the price is no more than $4. If Riverbed Water decides to produce the filters, it will need to invest $2,000,000 in new production equipment. Riverbed Water requires a minimum rate of return of 20% on all investments. Determine the target cost for the filter. (Round answer to 2 decimal places, e.8. 10.50.) Target cost per unit

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