Answer the Following Questions Using the Information Below

question 94

Multiple Choice

Answer the following questions using the information below:
After conducting a market research study, Harry 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 $23. The annual target sales volume for the coffee pot is 300,000. Potter has target operating income of 18% of sales.
-What is the target operating income?

• A)$1,200,000
• B)$600,000
• C)$621,000
• D)$1,242,000

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Definitions:

Uncertainty

A situation characterized by doubt or the inability to predict outcomes due to insufficient information or unpredictable variables.

Defined Benefit Plans

Retirement plans promising a specified monthly benefit at retirement, often based on salary and years of service.

Longevity

The length of time an individual or entity has been in existence or operational, often used in the context of work tenure or product durability.

Defined Contribution Plans

Retirement plans in which employees contribute a fixed amount or percentage of their salaries, and the final benefits depend on the plan's investment performance.