Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Elliott Manufacturing has decided to produce a new interior door to complement its exterior door line.The new door is expected to sell for $60 each,and the annual target sales volume for the doors is 20 000.Elliott has target operating profit of 20% of sales.
-What is the target cost for each interior door?

A) $48
B) $58
C) $45
D) $60