After conducting a market research study, Stewart 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 $120. The annual target sales volume for interior doors is 20,000. Stewart has a 20% expected return on sales target.
-What is the target profit margin?
A) $480,000
B) $600,000
C) $384,000
D) $360,000
Correct Answer:
Verified
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