A Custom Tailor Wishes to Use Target Profit Pricing to Establish

question 355

Multiple Choice

A custom tailor wishes to use target profit pricing to establish a price for a custom designed business suit.Assume variable cost is $200 per suit, fixed cost is $44,000, and a target profit of $50,000 on a volume of 50 suits is desired.What price should be charged for a typical custom suit?

• A)$900.00
• B)$1,040.00
• C)$1,800.00
• D)$2,080.00
• E)$4,680.00

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Definitions:

Oxytocin

Oxytocin is a hormone and neurotransmitter involved in childbirth and lactation, also known as the "love hormone", it plays a significant role in social bonding, sexual reproduction, and during and after childbirth.

Hormone

A regulatory substance produced in an organism and transported in tissue fluids such as blood to stimulate specific cells or tissues into action.

Bonding

The process of developing a close and emotionally significant relationship between individuals such as parents and their children, or between peers.

Recessive Gene

A type of gene that is not expressed in the phenotype unless two copies are present, one from each parent, as opposed to a dominant gene where only one copy is needed for expression.