Acorn Products currently sells small boats for $360. It has costs currently assigned to it of $280. A

competitor is bringing a new small boat to market that will sell for $300. Management believes it must lower

the price to $300 to compete in the market for small boats. Marketing believes that the new price will cause

sales to increase by 10 percent, even with a new competitor in the market. Acorn's sales are currently

100,000 per year.

31) Under cost-plus pricing, what is the required selling price to achieve a 15% markup?

A) $322

B) $285

C) $360

D) $300

E) none of the above

32) Under target costing, what is the target cost to achieve a 20% return on sales target?

A)

$ 288

B)

$ 240

C)

$ 224

D)

$ 280

E)

None of the above