Entertech Company Is Designing a Tablet Aimed at Families Travelling

question 23

Multiple Choice

Entertech Company is designing a tablet aimed at families travelling with young children. The company believes that the product can be sold for $150, and it requires a 25% profit on new products. What is the target cost of the tablet?

• A) $28.00
• B) $112.50
• C) $140.00
• D) $187.50

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Definitions:

Financial Statements

Formal records of an entity's financial activities and conditions, including the balance sheet, income statement, and cash flow statement.

Loan Requests

Applications submitted by individuals or entities to a lender, requesting the borrowing of a certain amount of money.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, providing an overview of a financial situation in a standardized format.

Current Asset

Current assets are short-term financial resources that are expected to be converted into cash, sold or consumed within one year or within the business's operating cycle, whichever is longer.