Answer the Following Question(s)using the Information Below

question 68

Multiple Choice

Answer the following question(s) using the information below.After conducting a market research study, Potter Products decided to produce an electric coffee pot to complement its line of kitchen products.It is estimated that the new coffee pot can be sold at a target price of $46.The annual target sales volume for the coffee pot is 300,000.Potter has target operating income of 18% of sales.
-What are the target sales revenues?

• A)$1,380,000
• B)$13,800,000
• C)$11,316,000
• D)$12,000,000
• E)$16,284,000

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Definitions:

Adverse Selection

A situation in financial markets where buyers and sellers have different information, leading to transactions that favor the party with more information.

Good Drivers

Good drivers refer to individuals who operate vehicles safely, adhering to traffic laws and regulations, and minimizing the risk of accidents.

Bad Drivers

Individuals who consistently engage in unsafe driving behaviors, such as speeding, not adhering to traffic signals, or distracted driving.

Commission

A fee paid to an agent or employee for transacting a sale, which is often a percentage of the sale price.