After Conducting a Market Research Study, Magnificent Manufacturing Decided to Produce

Multiple Choice

After conducting a market research study, Magnificent 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 $250. The annual target sales volume for interior doors is 28,000. Magnificent has target operating income of 40% of sales.
What is the target operating income?

A) $2,800,000
B) $4,200,000
C) $7,000,000
D) $9,800,000