?Blue Lights Co ? Based on the Information Provided, the Dollar Amount of Below

question 94

Multiple Choice

?Blue Lights Co.uses the total cost concept of product pricing.Given below is cost information for the production and sale of 50,000 units of its sole product.Blue Lights desires a profit equal to a 12.6% rate of return on invested assets of $1,000,000. $\begin{array}{lr}\text {Fixed factory overhead cost }&\$90,000\\\text {Fixed selling and administrative costs }&55,000\\\text { Variable direct materials cost per unit}&6.00\\\text {Variable direct labor cost per unit }&9.65\\\text {Variable factory overhead cost per unit }&3.50\\\text {Variable selling and administrative cost per unit }&1.20\\\end{array}$
? Based on the information provided, the dollar amount of desired profit from the production and sale of the company's product is:

• A) ?$126,000.
• B) $67,200.
• C) $237,700.
• D) $96,000.

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Definitions:

Contingency Variables

Factors or conditions that can change and affect the outcome of decision-making processes or situations.

Enduring Change

A lasting transformation within an individual, organization, or society that persists over time.

Behavior

The actions or reactions of an individual or group in response to external or internal stimuli.

Learning

Learning is an enduring change in behavior that results from experience.