Gibb,IncHas Just Designed a New Product with a Target Cost

question 76

Multiple Choice

Gibb,Inc.has just designed a new product with a target cost of $54.Gibb requires new products to have a profit of 25%.What is the target price for the new product?

• A)$13.50
• B)$54.00
• C)$64.00
• D)$72.00

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Definitions:

Reasonable Care

A legal standard that requires individuals to act with the same level of care that a reasonably prudent person would exhibit in the same situation.

Fraudulent Misrepresentation

An intentional false statement of a material fact made by one party to induce another party to enter into a contract, resulting in harm or loss.

Defalcation

The misappropriation of funds or property by a person trusted with its charge; often related to embezzlement.

Consciously False

Refers to a statement or claim made with the knowledge that it is not true.