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Answer the Following Questions Using the Information Below

Question 134

Multiple Choice

Answer the following questions using the information below:
Thornton Company has invested $2,000,000 in a plant to make commercial juicer machines. The target operating income desired from the plant is $360,000 annually. The company plans annual sales of 7,000 juicer machines at a selling price of $400 each.
-What is the cost base of each juicer machine for Thornton Company?


A) $349
B) $324
C) $338
D) $304

Correct Answer:

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