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After conducting a phone survey, Bad Backs Manufacturing decided to produce a new computer backpack to complement its backpack line. It is estimated that the
After conducting a phone survey, Bad Backs Manufacturing decided to produce a new computer backpack to complement its backpack line. It is estimated that the new computer backpack can be sold at a target price of $80. The annual target sales volume for computer backpacks is 18,000. Bad Backs has target operating income of 25% of sales.
What is the target cost?
A.
$1,440,000
B.
$960,000
C.
$1,600,000
D.
$1,080,000
E.
$800,000
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