Samples Corporation Would Like to Use Target Costing for a New

Samples Corporation would like to use target costing for a new product it is considering introducing.At a selling price of $21 per unit, management projects sales of 20, 000 units.The new product would require an investment of $400, 000.The desired return on investment is 12%. The desired profit according to the target costing calculations is:

A) $420, 000
B) $50, 400
C) $48, 000
D) $372, 000