A Custom Kitchen Cabinet Storeowner Wishes to Use a Target

question 8

Multiple Choice

A custom kitchen cabinet storeowner wishes to use a target return-on-sales pricing approach to establish a price for a typical section of cabinets.Assume that variable costs total $200 per unit,fixed cost is $44,000,and the storeowner desires a target profit of 20 percent return on sales at an annual volume of 400 cabinets.What price should be charged for a typical cabinet section?

• A)$263.50
• B)$311.00
• C)$387.50
• D)$445.50
• E)$775.00

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Definitions:

Internal Carotid Artery

A major artery located in the head and neck that supplies blood to the brain, eyes, eyelids, forehead, nose, and internal ear.

Carotid Canal

A passageway in the temporal bone of the skull that carries the internal carotid artery to the brain.

Jugular Foramen

A large opening in the base of the skull that transmits the internal jugular vein and several cranial nerves.

Foramen Ovale

An opening in the septum between the two atria of the heart that is present in the fetus and typically closes shortly after birth.