A Custom Kitchen Cabinet Storeowner Wishes to Use Target Profit

question 222

Multiple Choice

A custom kitchen cabinet storeowner wishes to use target profit pricing to establish a price for a typical section of cabinets. Assume variable cost is $200 per unit, fixed cost is $44,000, and the storeowner desires a target profit of 20 percent of sales on an annual volume of 400 cabinets. What price should be charged for a typical cabinet section?

• A)$387.50
• B)$311.00
• C)$372.00
• D)$395.75

Understand the significance of scientific research and discoveries concerning animal biology, including medical and ecological applications.

Understand the unique structural and functional characteristics of sponges.

Identify the main groups of mollusks and their distinctive features.

Describe how certain marine animals feed and relate this to their ecological roles.

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Definitions:

Information Power

A type of marketing channel power within an administered vertical marketing system in which one party (e.g., the manufacturer) provides or withholds important information to influence the actions of another party (e.g., the retailer).

Market Data

Information related to prices, supply, demand, and dynamics of the market that helps businesses to make informed decisions.

Walmart

A multinational retail corporation operating a chain of hypermarkets, discount department stores, and grocery stores, known for its extensive product selection and low prices.

Corporate Vertical Marketing System

A structured form of marketing system where subsequent stages of production and distribution are under a single ownership.