The Management of Fanton Corporation Is Considering Introducing a New

question 58

Multiple Choice

The management of Fanton Corporation is considering introducing a new product-a compact lawn blower. At a selling price of $38 per unit, management projects sales of 60,000 units. The lawn blower would require an investment of $500,000. The desired return on investment is 18%.
-The desired profit according to the target costing calculations is:

• A) $410,400
• B) $2,190,000
• C) $2,280,000
• D) $90,000

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Definitions:

Food Portions

The amount or size of individual servings of various foods, important in dietary planning and nutrition.

Doubled

In a general context, it refers to something being made twice as much in quantity, size, etc., or duplicated.

Tripled

Increased or expanded threefold.

Sedentary Activities

Activities that involve little to no physical movement, leading to a lifestyle characterized by a lot of sitting or lying down, with very low energy expenditure.