Question

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 29,000. Magnificent has target operating income of 40% of sales

Answer 1

Target sales revenue = $7,830,000

Step-by-step explanation:

given data

target price = $270

annual target sales volume = 29,000

target operating income = 40%

to find out

Target sales revenue

solution

we will get here Target sales revenue that is express as

Target sales revenue = target price × annual target sales volume .................1

put here value we get

Target sales revenue = $270 × 29000

Target sales revenue = $7,830,000