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Davidson'sIndustries Makes Chocolate Candy Bars in Many Shapes

Question 57

Multiple Choice

Davidson'sIndustries makes chocolate candy bars in many shapes. Davidson's current Return on Sales is 15%. Davidson desires a profit of 20%. Assuming their product costs are $1,500,000 and they believe they can maintain sales of $2,500,000 to achieve their target profit, they must


A) Keep everything the same, but reduce operating costs by $625,000
B) Keep everything the same, but reduce cost of goods sold by $375,000
C) Keep everything the same, but reduce operating costs by $ 125,000
D) None of the above

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