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    Market Research

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    The following applies to all 4 parts:

    After conducting a market research study, Morla 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 estimated annual target sales volume is $20,000 interior doors. Morlan has a 20% expected return on sales target.

    1) What are the total target sales

    $960,000, $2,000,000, $1,200,000, or none of these

    I believe - $1,200,000 is the answer - please advise of answer and why - thanks!

    2) What is the total target profit

    $240,000, $12,000, $960,000, or none of these

    I believe - $240,000 is the answer - please advise answer & why - thanks!

    3) What is the total target costs

    $192,000, $960,000, $1,152,000, or done of these

    I believe - $960,000 - is the answer - please advise answer & why - thanks!

    4) What is the target cost per interior door

    $48, 58, 60, or none of these

    I believe $48 is the answer - please answer & why - thanks!

    © BrainMass Inc. brainmass.com June 3, 2020, 5:39 pm ad1c9bdddf
    https://brainmass.com/business/accounting/market-research-34573

    Solution Preview

    1. Total target sales = target sales volume*target sales price
    =20000*60
    =$1,200,000

    2. ...

    $2.19

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