Answer the Following Questions Using the Information Below

question 2

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 target operating income?

• A) $16,992
• B) $14,400
• C) $11,808
• D) $3,240

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Definitions:

Employee Retirement Income Security Act

A federal law that sets minimum standards for pension plans in private industry to protect individuals in these plans.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another. Often applicable in trustee, advisor, or agent relationships.

Plan Information

Detailed data and documentation regarding the specifics and provisions of a plan or program, often used in contexts such as retirement planning or insurance.

Occupational Safety

The discipline focused on the safety, health, and welfare of people engaged in work or employment.