The Management of Nerby Corporation Is Considering Introducing a New

Multiple Choice

The management of Nerby Corporation is considering introducing a new product--a compact lawn blower. At a selling price of $28 per unit, management projects sales of 40,000 units. The lawn blower would require an investment of $900,000. The desired return on investment is 20%.
-The desired profit according to the target costing calculations is:

A) $1,120,000
B) $224,000
C) $940,000
D) $180,000