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
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
Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
Section: Chapter Questions
Problem 1EP
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What is the target price to obtain a 15% profit margin on sales??
Transcribed Image Text: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
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