Use the Following Information for Questions
Custom Shoes Co -What Is the Target Selling Price Per Pair of Shoes

question 85

Multiple Choice

Use the following information for questions
Custom Shoes Co. has gathered the following information concerning one model of shoe: $\begin{array}{ll}\text { Variable manufacturing costs } & \$ 40,000 \\\text { Variable selling and administrative costs } & \$ 20,000 \\\text { Fixed manufacturing costs } & \$ 160,000 \\\text { Fixed selling and administrative costs } & \$ 120,000 \\\text { Investment } & \$ 1,700,000 \\\text { ROl } & 30 \% \\\text { Planned production and sales } & 5,000 \text { pairs }\end{array}$
-What is the target selling price per pair of shoes?

• A) $142
• B) $170
• C) $114
• D) $158

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Definitions:

Mature Environments

Environments or sectors that have reached a state of equilibrium with established players, slow innovation, and stable customer demand.

Stable Environments

Contexts or settings characterized by predictability and consistent conditions, beneficial for strategic planning and business operations.

Rapid Growth

A significant increase in a company's revenue, size, or market share in a short period, often seen in start-up ecosystems.

Venture

A business venture refers to a new enterprise or initiative that involves some level of risk, aiming for growth and profit.