38 other question will save this response. A product costs $100 to manufacture and $40 to market and $20 to distribute (ship to customers.) R&D costs are allocated at $30 per unit. Based on a targeted rate of return, manager uses a mark-up of 60%. What is the markup $ component based on a Cost-Plus pricing approach? a. $114 b. $96 c. $120 d. $84 Moving to another question will save this response. Question 37 After conducting a market research study. Magnificent 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 $240. The annual target sales volume for interior doors is 21,000. Magnificent has target operating income of 20% of sales. What is the target cost? a. $4,032.000 b. $5,040,000 c. $6,048,000 d. $1,008.000 A Moving to another question will save this response. Question 36 Mega Company has three products. A, B, and C. The following information is available: Sales Variable costs Contribution margin Fixed costs: Avoidable Unavoidable Operating income Product A Product B Product C $70.000 597,000 $23.000 37,000 51,000 15,000 33,000 46,000 8.000 10.000 20.000 2.000 7,000 12,000 9,400 $16.000 $14,000 $(3,400) Mega Company is thinking of dropping Product C because it is reporting a loss. Assuming Mega drops Product C and does NOT replace it operating income will a. decrease by $6,000 b. increase by $2.000 increase by $3.400 d. decrease by $11,400