Sunday, September 18, 2011

What is the cost base of each juicer machine for Grant Company?

ACCOUNTING

Multiple Choice

Grant Company has invested $1,000,000 in a plant to make commercial juicer machines. The target operating income desired from the plant is $180,000 annually. The company plans annual sales of 7,000 juicer machines at a selling price of $200 each.



What is the cost base of each juicer machine for Grant Company?

a. $174

b. $162

c. $169

d. $152

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