Data Concerning Plaxco Corporation's Single Product Appear Below

question 85

Multiple Choice

Data concerning Plaxco Corporation's single product appear below:
-Assume the company's monthly target profit is $12,000. The dollar sales to attain that target profit is closest to:

• A) $941,500
• B) $754,166
• C) $451,920
• D) $869,077

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Definitions:

Disposable Income

The amount of money individuals or households have to spend or save after taxes have been deducted.

Carrying Costs

Expenses associated with holding inventory, including storage, handling, insurance, and spoilage costs.

Variable Cost

Costs that change in proportion to the activity of a business such as production volume or sales.

Unit Variable Cost

The cost associated with producing one additional unit of a product, including labor and materials, which varies with the production volume.