Answer the Following Questions Using the Information Below

question 157

Multiple Choice

Answer the following questions using the information below:
Judith Vending Company has invested $800,000 in a plant to make vending machines. The target operating income desired from the plant is $120,000 annually. The company plans annual sales of 1,200 vending machines at a selling price of $1,000 each.
-What is the cost base of each vending machine for Judith Vending Company?

• A) $1,000
• B) $950
• C) $900
• D) $850

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Definitions:

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The process of bringing new and innovative products or services to the market, turning ideas into commercial successes.

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