Problemtarget believes it can sell 3500000 of a new vehicle, Ask an Expert

Accounting

Problem:

Target believes it can sell 3,500,000 of a new vehicle charger for $8 each. There will be $3,000,000 in fixed costs associated with the charger.

Required:

Question: If the company desires to make a profit of $2,000,000 on the charger, what is the target variable cost per charger?

$7.25

$9.00

$6.57

$9.40

Note: Provide support for rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167225

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