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!
1. Total target sales = target sales volume*target sales price