The Management of Rademacher Corporation Is Considering Introducing a New

Multiple Choice

The management of Rademacher Corporation is considering introducing a new product--a compact lawn blower. At a selling price of $37 per unit, management projects sales of 47,000 units. The lawn blower would require an investment of $500,000. The desired return on investment is 17%.The desired profit according to the target costing calculations is:

A) $295,630
B) $85,000
C) $1,654,000
D) $1,739,000