Wang CoManufactures and Sells a Single Product That Sells for $450

question 126

Multiple Choice

Wang Co.manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit.Annual fixed costs are $800,000.Current sales volume is $4,200,000.Management targets an annual pre-tax income of $1,125,000.
-Compute the dollar sales to earn the target pre-tax net income.

• A)$5,640,000.
• B)$4,812,500.
• C)$3,378,378.
• D)$2,991,004.
• E)$2,612,613.

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Definitions:

Unique Offerings

Products, services, or experiences provided by a company that are distinct and not available from competitors, often creating a competitive advantage.

Knowledge Flow

The movement of knowledge from where it is generated to where it can be utilized, encompassing the transfer and sharing of knowledge within and between organizations.

Functional Structure

An organizational design that groups employees based on their specialized roles or functions, such as marketing, finance, or operations.

Multidomestic Company

A business strategy adopted by a company that operates in multiple countries, allowing each subsidiary to act independently and tailor its operations and products to the local market.