Wack's Back Porch manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $270 per table, consisting of 90% variable costs and 10% fixed costs. The company has surplus capacity available. It is Jack's Back Porch's policy to add a 75% markup to full costs. A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style. Jack's Back Porch is invited to submit a bid to the hotel chain. What per unit price will Jack's Back Porch most likely bid on this long-term order? O A. $425.00 per unit OB. $47.00 per unit C. $472.50 per unit D. $202.50 per unit Sales of Granite City Products Inc. have been on a steady decline for the last 12 months. A market research study conducted revealed that the product of Granite City Products Inc. can be sold only for $430 as opposed to the current market price charged of $530 per unit. Granite City Products Inc. has decided to revise its sales price to $430. The annual sales target volume of the product after price revision is 200 units. Granite City Products Inc. wants to earn 40% on its sales amount. What is the total target cost? O A. $86,000 O B. $34,400 O C. $51,600 OD. $120,400 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 $270. The annual target sales volume for interior doors is 30,000. Magnificent has target operating income of 30% of sales. What is the target operating income? O A. $10,530,000 OB. $8,100,000 OC. $2,430,000 OD. $5,670,000