Answer the following questions using the information below:
After conducting a market research study, Hamid Products decided to produce an electric coffee pot to complement its line of kitchen products. It is estimated that the new coffee pot can be sold at a target price of $23. The annual target sales volume for the coffee pot is 300,000. Hamid has target operating income of 18% of sales.
-What are the target sales revenues?
A) $690,000
B) $6,000,000
C) $6,900,000
D) $600,000

Question

Quizplus · Accepted Answer

The target sales revenue is calculated by multiplying the target price per unit by the annual target sales volume: $23 * 300,000 = $6,900,000.

Answer the Following Questions Using the Information Below