Q 1

Ben's Blankets is introducing a quilt with silk fabric and cotton batting. It estimates sales of 5,000 quilts at $120 per unit. At the last minute, the supplier sends wool batting rather than cotton. The wool is more expensive. If Ben's sells 5,000 at $120 each but does not adjust desired profit for the change, how will actual profit compare to desired profit? O Actual profit will exceed desired profit because actual cost is below target cost. O Actual profit will be below desired profit because actual cost is above target cost. O Actual profit will be below desired profit because actual cost is below target cost. O Actual profit will exceed desired profit because actual cost is above target cost