Answer the Following Question(s)using the Information Below

question 38

Multiple Choice

Answer the following question(s) using the information below.After conducting a market research study, Potter 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 $46.The annual target sales volume for the coffee pot is 300,000.Potter has target operating income of 18% of sales.
-What is the total target cost?

• A)$9,840,000
• B)$11,316,000
• C)$13,352,000
• D)$9,279,120
• E)$1,131,600

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Definitions:

Rules Of Agency

Guidelines governing the relationship between a principal and an agent, where the agent acts on behalf of the principal.

Officers

Officers are individuals charged with the management and operational duties within an organization, often holding specific titles and responsibilities.

Corporate Articles

Legal documents filed with a governmental body to formally establish the existence of a corporation under the law.

Equity

A measure of ownership interest in a corporation or asset, reflecting the residual value to shareholders after debts and liabilities have been settled.