Use the Information Below to Answer the Following Question(s)

question 43

Multiple Choice

Use the information below to answer the following question(s) .Acorn Products currently sells small boats for $360.It has costs currently assigned to it of $280.A competitor is bringing a new small boat to market that will sell for $300.Management believes it must lower the price to $300 to compete in the market for small boats.Marketing believes that the new price will cause sales to increase by 10 percent, even with a new competitor in the market.Acorn's sales are currently 100,000 per year.
-Under cost-plus pricing, what is the required selling price to achieve a 15% markup?

• A)$285
• B)$6300
• C)$310
• D)$315
• E)$322

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Definitions:

Unrealized Loss

A decrease in the value of an investment that has not yet been sold for cash.

Trading Investments

Assets that a company holds primarily for the purpose of selling them in the near term to generate income.

Subsidiary Company

A company that is controlled by another company, known as the parent company, through majority ownership or significant influence.

Investee Company

A company in which an investor holds a significant interest but not controlling stake.