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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. What are target sales revenues? OA. $7,830,000 OB. $3.132.000 C. $4,698,000 O D. $10,962,000

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hyderali230

Answer:

A. $7,830,000

Explanation:

Target Price of the Interior door = $270

Target Sales Volume of the Interior door = 29,000

Target Sales Revenue of Interior doors = Target Price of the Interior door X Target Sales Volume of the Interior door

Target Sales Revenue of Interior doors = $270 x 29,000

Target Sales Revenue of Interior doors = $7,830,000

So, the correct option is A. $7,830,000.

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