Answer the following questions using the information below:
Elliott Manufacturing has decided to produce a new interior door to complement its exterior door line.The new door is expected to sell for $60 each,and the annual target sales volume for the doors is 20 000.Elliott has target operating profit of 20% of sales.
-What is the target operating profit?
A)$240 000
B)$180 000
C)$300 000
D)$192 000

Question

Quizplus · Accepted Answer

To calculate the target operating profit, we need to first calculate the total sales revenue: 
Total sales revenue = Selling price x Target sales volume = $60 x 20,000 = $1,200,000 
Then, we can calculate the target operating profit as: 
Target operating profit = 20% of total sales revenue = 0.2 x $1,200,000 = $240,000

Therefore, the answer is A) $240,000.

As for the second question, there isn't enough information given to provide a "best choice."

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