Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Judith Vending Company has invested $800,000 in a plant to make vending machines. The target operating income desired from the plant is $120,000 annually. The company plans annual sales of 1,200 vending machines at a selling price of $1,000 each.
-What is the cost base of each vending machine for Judith Vending Company?

A) $1,000
B) $950
C) $900
D) $850