Victor's Detailing Customers Would Be Willing to Pay $57 Per

question 148

Multiple Choice

Victor's Detailing customers would be willing to pay $57 per detail. The average job would cost $30.
-Refer to the Figure.Assume Victor's Detailing uses target costing.The company requires a 40% profit on each job.Which of the following should Victor's Detailing do?

• A)reduce the required percentage to stay in business
• B)ask customers to pay more
• C)sell services at the price customers are willing to pay
• D)find a way to reduce costs

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