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:

Overseas Markets

Foreign sectors where goods, services, and investments cross national borders for trade.

Multidomestic Corporations

Companies that operate in multiple countries, adapting their products and practices to each local market.

Independent Companies

Businesses that operate on their own, without being controlled by or affiliated with a larger conglomerate or parent company.

Expatriates

Individuals who live and work outside their native country, often for a specified period and for professional reasons.