Saturday, September 17, 2011

What are target sales revenues?

ACCOUNTING

Multiple Choice

After conducting a market research study, Schultz Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $60. The annual target sales volume for interior doors is 20,000. Schultz has target operating income of 20% of sales.



What are target sales revenues?

a. $960,000

b. $2,000,000

c. $1,200,000

d. none of the above

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