A Custom Tailor Wishes to Use Target Profit Pricing to Establish

question 270

Multiple Choice

A custom tailor wishes to use target profit pricing to establish a price for a custom-designed business suit. Assume variable cost is $200 per suit, fixed cost is $44,000, and the target profit is $50,000 based on a volume of 50 suits. What price should be charged for a typical custom suit?

• A) $520
• B) $1,040
• C) $1,880
• D) $2,080
• E) $10,000

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Definitions:

Protozoa

An informal group of unicellular, animal-like protists, including amoebas, foraminiferans, actinopods, ciliates, flagellates, and apicomplexans. (The adjectival form is protozoan.)

Means of Transmission

The way in which diseases, pathogens, or information is spread from one individual or place to another.

Choanoflagellates

Choanoflagellates are a group of free-living unicellular and colonial flagellate eukaryotes considered to be the closest living relatives of animals.

Evolutionary Importance

The significance of a trait, organism, or event in influencing the course of evolutionary changes within species over time.