If a company had $150,000 invested and wanted to make a 10 percent return on investment, it would add _____ to its annual total costs in setting prices using the target return pricing method.
A) $10,000
B) $20,000
C) $150,000
D) $15,000
E) $1,500

Question

Quizplus · Accepted Answer

To make a 10% return on a $150,000 investment, the company would need to earn $15,000 in profit. This $15,000 would then be added to the company's total costs when setting prices using the target return pricing method. Therefore, the answer is D, $15,000.

If a Company Had $150,000 Invested and Wanted to Make