Answer the Following Question(s)using the Information Below

Multiple Choice

Answer the following question(s) using the information below.After conducting a market research study, Schultz Manufacturing decided to produce a new interior door to complement its exterior door line.It is estimated that the new interior door can be sold at a target price of $60.The annual target sales volume for interior doors is 20,000.Schultz has target operating income of 20% of sales.
-What is the target cost?

A) $800,000
B) $960,000
C) $1,440,000
D) $1,600,000
E) $768,000