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After conducting a market research study, Lorax 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 $60. The annual target sales volume for interior doors is 20,000. Schultz has target Profit (Operating Income) of 20% of sales.
Question 1: What is the target cost?
Select one:
a. $1,600,000
b. $1,440,000
c. $960,000
d. $800,000
Prepare a 2-3 page analysis by answering the questions below. Be sure to cite your references using APA format.
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