Multiple Choice
A custom kitchen cabinet storeowner wishes to use target profit pricing to establish a price for a typical section of cabinets. Assume variable cost is $200 per unit, fixed cost is $44,000, and the storeowner desires a target profit of 20 percent of sales on an annual volume of 400 cabinets. What price should be charged for a typical cabinet section?
A) $387.50
B) $311.00
C) $372.00
D) $395.75
Correct Answer:
Verified
Correct Answer:
Verified
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