Answer the Following Questions Using the Information Below

question 69

Multiple Choice

Answer the following questions using the information below:
Elliott Manufacturing has decided to produce a new interior door to complement its exterior door line.The new door is expected to sell for $60 each,and the annual target sales volume for the doors is 20 000.Elliott has target operating profit of 20% of sales.
-The product strategy in which companies first determine the price at which they can sell a new product and then design a product that can be produced at a low enough cost to provide adequate operating profit is referred to as:

• A)full costing.
• B)cost-plus pricing.
• C)target costing.
• D)Kaizen costing.