What is the target price to obtain a 15% profit margin on sales?? Based on potential sales of 500 units per year, a newproduct has estimated traceable costs of $990,000.What is the target price to obtain a 15% profitmargin on sales?a. $2,329b. $2,277c. $1,980d. $1,935

To determine the target price to obtain a 15% profit margin on sales, we can use the formula: Target…

Answered: Based on potential sales of 500 units…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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Based on potential sales of 500 units per year, a new product has estimated traceable costs of $990,000. What is the target price to obtain a 15% profit margin on sales? a. $2,329 b. $2,277 c. $1,980 d. $1,935