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A custom kitchen cabinet storeowner wishes to use target return-on-sales pricing to establish a price for a typical section of cabinets in the new international
A custom kitchen cabinet storeowner wishes to use
target return-on-sales pricing to establish a price for a
typical section of cabinets in the new international
market.
Variable cost is $200 per unit, fixed cost is $44,000,
and the storeowner desires a target profit of 20
percent of sales on an annual volume of 400 cabinets.
What price should be charged for a typical cabinet
section?
Please show all work on how you got the answer please so I can understand.
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