Xtech Games Inc

question 135

Multiple Choice

Xtech Games Inc. has a new video game cassette for the upcoming holiday season. It is trying to determine the target cost for the game if the selling price per unit will be set at $70, the going price for video games, and the firm wants to earn a target operating income of 30% of sales. What will be the target cost per unit for the new game?

• A) $70
• B) $49
• C) $30
• D) $21

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Definitions:

Men's Clothing Store

A retail establishment specializing in selling apparel and accessories targeted at the male demographic.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.

Financial Statement

Documents that provide an overview of a company's financial performance and condition, typically including the balance sheet, income statement, and cash flow statement.

Merchandising Business

A company involved in the purchase and sale of goods, typically aiming to sell at a higher price than purchase cost.