Answer the Following Questions Using the Information Below

question 183

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 cost per unit?

• A) $387.04
• B) $328.00
• C) $268.96
• D) $73.80

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Definitions:

Memos

Short for "memorandums," these are concise written documents used within an organization to communicate policies, procedures, or related official business.

Sender

The individual or entity initiating a message or communication to another party or parties.

Receiver

A receiver in communication refers to the individual or group that interprets or decodes the message sent by the sender.

Decoder

In communication, the process or device for interpreting or giving meaning to a message received from a sender.