Answer the Following Questions Using the Information Below

question 15

Multiple Choice

Answer the following questions using the information below:
Potter Products has produced an electric coffee pot to complement its range of kitchen products.The new coffee pot can be sold at a target price of $46,and annual target sales volume for the coffee pot is 250 000.Potter has target operating profit of 20% of sales.
-What are the target sales revenues?

• A)$1 150 000
• B)$11 500 000
• C)$12 000 000
• D)$1 200 000

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Definitions:

New Automobile

A recently manufactured vehicle intended for personal transportation, featuring the latest technology and design.

Cigarettes

Narrow cylindrical rolls of finely cut tobacco encased in paper, intended for smoking.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing to offer for sale.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes by an infinite amount in response to any change in price; horizontal demand or supply curve.