Multiple Choice
Samples Corporation would like to use target costing for a new product it is considering introducing.At a selling price of $21 per unit, management projects sales of 20, 000 units.The new product would require an investment of $400, 000.The desired return on investment is 12%. The desired profit according to the target costing calculations is:
A) $420, 000
B) $50, 400
C) $48, 000
D) $372, 000
Correct Answer:
Verified
Correct Answer:
Verified
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