The desired profit according to the target costing calculations is:
A)$420,000
B)$50,400
C)$48,000
D)$372,000

Name: The desired profit according to the target costing calculations is: A)$420,000 B)$50,400 C)$48,000 D)$372,000
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The desired profit can be calculated by subtracting the total cost from the target price. 
Target price = $360,000 
Total cost = $312,000 
Desired profit = $360,000 - $312,000 = $48,000. 
Therefore, the best choice is C.

The Desired Profit According to the Target Costing Calculations Is