Mallard Corporation uses the product cost method of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% return on invested assets of $800,000.
-The dollar amount of desired profit from the production and sale of the company's product is
A)$105,840
B)$225,000
C)$96,000
D)$220,500

Question

Mallard Corporation uses the product cost method of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% return on invested assets of $800,000.  ​
-The dollar amount of desired profit from the production and sale of the company's product is
A)$105,840 
B)$225,000 
C)$96,000 
D)$220,500

Quizplus · Accepted Answer

The desired profit is calculated based on the company's target or goal for profit from its operations, which in this case is $96,000.

Mallard Corporation Uses the Product Cost Method of Product Pricing