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:

Evaluate

To determine the value of an expression by computing its numerical value.

Calculate

Perform mathematical operations to find a numerical answer.

Solve

Refers to finding the answer or explanation for a problem or equation.

Evaluate

The process of calculating the value of an expression.