Blumstein Corporation Would Like to Use Target Costing for a New

Multiple Choice

Blumstein Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $22 per unit, management projects sales of 60,000 units. The new product would require an investment of $300,000. The desired return on investment is 11%.
-The desired profit according to the target costing calculations is:

A) $33,000
B) $145,200
C) $1,287,000
D) $1,320,000