Hauber Corporation Would Like to Use Target Costing for a New

Multiple Choice

Hauber Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $26 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 20%.
-The desired profit according to the target costing calculations is:

A) $312,000
B) $60,000
C) $1,560,000
D) $1,500,000