The Management of Nerby Corporation Is Considering Introducing a New

question 13

Multiple Choice

The management of Nerby Corporation is considering introducing a new product--a compact lawn blower. At a selling price of $28 per unit, management projects sales of 40,000 units. The lawn blower would require an investment of $900,000. The desired return on investment is 20%.
-The desired profit according to the target costing calculations is:

• A)$1,120,000
• B)$224,000
• C)$940,000
• D)$180,000

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Definitions:

Emotionally Stable

The characteristic of being able to remain calm, composed, and untroubled by stress or change.

Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual.

Limit Choices

Refers to reducing the number of options available to make a decision easier or to focus on more viable alternatives.

Constant

Something that remains unchanged or stable over a period of time.