Answer the Following Question(s)using the Information Below

question 157

Multiple Choice

Answer the following question(s) using the information below.After conducting a market research study, Schultz Manufacturing decided to produce a new interior door to complement its exterior door line.It is estimated that the new interior door can be sold at a target price of $60.The annual target sales volume for interior doors is 20,000.Schultz has target operating income of 20% of sales.
-What is the target cost?

• A)$800,000
• B)$960,000
• C)$1,440,000
• D)$1,600,000
• E)$768,000

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Definitions:

Secured Credit

A loan or credit extended where the borrower pledges an asset as collateral to guarantee repayment.

Unsecured Credit

A type of credit that is not backed by collateral, meaning the lender relies on the borrower's creditworthiness rather than security in case of default.

Unsecured Credit

A type of credit not backed by collateral, where the lender relies on the borrower's creditworthiness rather than securing assets.

Goods

Items or merchandise that are manufactured or produced for sale.