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Answer the Following Questions Using the Information Below

question 42

Multiple Choice

Answer the following questions using the information below:
Sales of Blair Inc. have been on a steady decline for the last 12 months. A market research study conducted revealed that the product of Blair Inc. can be sold only for $400 as opposed to the current market price charged of $500 per unit. Blair Inc. has decided to revise its sales price to $400. The annual sales target volume of the product after price revision is 200 units. Blair Inc. wants to earn 18% on its sales amount.
-What is the total target cost?

Comprehend the relationship between debits and credits in the context of different account types.

Understand the purpose and process of creating a trial balance and its role in proving the equality of debits and credits.

Identify common errors in the accounting process and know the steps for their correction.

Differentiate between the general journal and general ledger in terms of information content.

Definitions:

Probability Distribution

A function in mathematics that offers the chances of various outcomes happening in an experiment.

Average Profit

The mean amount of profit earned, calculated by dividing the total profit by the number of units sold or the period over which the profit was earned.

Weight Gain

An increase in body weight, which can be due to muscle mass increase, fat accumulation, or other factors.

Probability Distribution

A mathematical description of the likelihood of different outcomes in an experiment, showing how probabilities are distributed over a range of values.