Well Water Inc The Target Cost Per Bottle Is
A)$0

Multiple Choice

Well Water Inc.wants to produce and sell a new flavored water.In order to penetrate the market, the product will have to sell at $2.00 per 12 oz.bottle.The following data has been collected: $$\begin{array} { l l } \text { Annual sales } & 50,000 \text { bottles } \\\text { Projected selling and administrative costs } & \$ 8,000 \\\text { Desired profit } & \$ 70,000\end{array}$$ The target cost per bottle is

A) $0.44.
B) $0.60.
C) $0.16.
D) $0.40.