Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
After conducting a market research study, Ed 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 $120. The annual target sales volume for interior doors is 20,000. Ed has target operating income of 20% of sales.
-What is the target cost?

A) $1,800,000
B) $1,920,000
C) $2,520,000
D) $2,016,000