Custom Tailor Wishes to Use Target Profit Pricing to Establish

question 88

Multiple Choice

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 the target profit is $50,000 based on a volume of 50 suits.What price should be charged for a typical custom suit?

• A) $520
• B) $1,040
• C) $1,880
• D) $2,080
• E) $10,000

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Definitions:

Drug-Resistant Bacteria

Bacteria that have developed immunity to certain antibiotics, making infections harder to treat.

Antibiotics

Medicinal compounds used to kill or inhibit the growth of bacteria to fight bacterial infections.

Infectious Bacteria

Bacteria that can cause disease in their host; they can spread from person to person or through contaminated surfaces.

1,2-Ethanediol

Another name for ethylene glycol, a colorless, sweet-tasting organic compound used primarily as an antifreeze in cooling and heating systems.