Sunday, September 18, 2011

What is the cost base of each vending machine for Timothy Company?

ACCOUNTING

Multiple Choice

Timothy Company has invested $2,000,000 in a plant to make vending machines. The target operating income desired from the plant is $300,000 annually. The company plans annual sales of 1,500 vending machines at a selling price of $2,000 each.



What is the cost base of each vending machine for Timothy Company?

a. $1,739

b. $1,802

c. $1,700

d. $1,780

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