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After conducting a market research study, Magnificent Manufacturing decided to produce a new interior door to...

After conducting a market research study, Magnificent Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $250. The annual target sales volume for interior doors is 28,000. Magnificent has target operating income of 40% of sales. What is the target operating income?

A) $2,800,000

B) $4,200,000

C) $7,000,000

D) $9,800,000
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Answer #1
Target operating income
28,000*250*40%
            2,800,000
answer option A
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