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QUESTION 3 Simple T's, Inc. sells plain T-shirts in a very competitve market and thus needs to price its T-shirts at $12 each to maximize sales. It expects to sell 12,000 T-shirts. Its total current costs to make 12,000 T-shirts is $120,000. How much must its target total costs equal to reach its desired profit of $30,000?

QUESTION 3 Simple T's, Inc. sells plain T-shirts in a very competitve market and thus needs to price its T-shirts at $12 each to maximize sales. It expects to sell 12,000 T-shirts. Its total current costs to make 12,000 T-shirts is $120,000. How much must its target total costs equal to reach its desired profit of $30,000?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 3 Simple T's, Inc. sells plain T-shirts in a very competitve market and thus needs to price its T-shirts at $12 each to maximize sales. It expects to sell 12,000 T-shirts. Its total current costs to make 12,000 T-shirts is $120,000. How much must its target total costs equal to reach its desired profit of $30,000?
Transcribed Image Text:QUESTION 3 Simple T's, Inc. sells plain T-shirts in a very competitve market and thus needs to price its T-shirts at $12 each to maximize sales. It expects to sell 12,000 T-shirts. Its total current costs to make 12,000 T-shirts is $120,000. How much must its target total costs equal to reach its desired profit of $30,000?
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