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A Custom Kitchen Cabinet Storeowner Wishes to Use Target Profit

Question 124

Multiple Choice

A custom kitchen cabinet storeowner wishes to use target profit pricing to establish a price for a typical section of cabinets.Assume variable cost is $200 per unit,fixed cost is $44,000,and a target profit of $10,000 on a volume of 400 cabinets is desired.What should be charged for a typical cabinet section?


A) $335.00
B) $310.00
C) $455.00
D) $398.00

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