Crimpson Company Has Invested $2,200,000 in a Plant to Make

Multiple Choice

Crimpson Company has invested $2,200,000 in a plant to make commercial juicer machines. The target operating income desired from the plant is $306,000 annually. The company plans annual sales of 7700 juicer machines at a selling price of $300 each.
What is the cost base of each juicer machine for Crimpson Company?

A) $260.26
B) $39.74
C) $300.00
D) $285.71