Answer the Following Questions Using the Information Below

question 29

Multiple Choice

Answer the following questions using the information below:
After conducting a market research study, Ed 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 $120. The annual target sales volume for interior doors is 20,000. Ed has target operating income of 20% of sales.
-What is the target cost for each interior door?

• A)$96
• B)$116
• C)$120
• D)$90

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Definitions:

Subduction Zone

A region of the Earth's crust where one tectonic plate moves under another, leading to volcanic activity and earthquakes.

Arc

A continuous portion of a circle or other curved line, or in geological terms, a curved series of volcanic islands that form above a subducting plate.

Tectonic Terrane

A fault-bounded body of rock that has a different geologic history than adjacent regions.

Horst and Graben

Geological structures where a horst is a raised block of the earth's crust bordered by faults, and a graben is a lowered block of the earth's crust bordered by parallel faults.