Cartel Ltd Has Introduced a New Product with a Target

question 35

Multiple Choice

Cartel Ltd has introduced a new product with a target price of $240 and a profit requirement of 33.3 per cent on sales. What is the target cost?

• A) $120
• B) $160
• C) $180
• D) $200

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Definitions:

Assessment Value

The dollar value assigned to a property for purposes of measuring applicable taxes or insurance premiums.

Investment Company

A business structure, such as a corporation or trust, dedicated to managing the combined investments of various investors in financial markets.

Front-end Loads

Charges or fees that are paid by investors at the time of purchasing shares of a mutual fund or an investment trust.

Low-load Mutual Funds

Mutual funds that charge a lower sales load (commission) compared to typical sales charges, making them more cost-effective for investors.