Boomer Boombox Inc

question 68

Multiple Choice

Boomer Boombox Inc. wants to produce and sell a new lightweight radio. Desired profit per unit is $1.84. The expected unit sales price is $22 based on 10,000 units. What is the total target cost?

• A) $201,600
• B) $220,000
• C) $18,400
• D) $238,400

---

Definitions:

Direct Materials

Direct materials refer to raw materials that can be directly attributed to the production of a specific product, considered a variable cost in manufacturing.

Cost of Goods Manufactured

The total cost incurred to manufacture products, including costs related to materials, labor, and manufacturing overhead, within a specific period.

Ending Balance

The amount of money in an account at the end of a given period, after all transactions have been accounted for.

Raw Materials

Essential substances and components utilized in production processes for the creation of completed items.