The Management of Rispoli Corporation Is Considering Introducing a New

Multiple Choice

The management of Rispoli Corporation is considering introducing a new product-a compact lawn blower.At a selling price of $38 per unit, management projects sales of 10, 000 units.The lawn blower would require an investment of $700, 000.The desired return on investment is 11%. The desired profit according to the target costing calculations is:

A) $380, 000
B) $303, 000
C) $41, 800
D) $77, 000