Welker Company is designing an all-in-one grill and cooler aimed at sports fans. The company believes that the product can be sold for $180; and it requires a 30% profit on new products. What is the target cost of the all-in-one grill and cooler?
A) $140
B) $54
C) $175
D) $126
E) $168

Question

Quizplus · Accepted Answer

Target cost = selling price - desired profit
Desired profit = 30% of selling price = 0.3 x $180 = $54
Target cost = $180 - $54 = $126

Therefore, the target cost of the all-in-one grill and cooler is $126. Choice D is the correct answer.

Welker Company Is Designing an All-In-One Grill and Cooler Aimed