The dollar amount of desired profit from the production and sale of Magpie's product is

A) $175,000
B) $67,200
C) $73,500
D) $96,000

Question

The dollar amount of desired profit from the production and sale of Magpie's product isA) $175,000B) $67,200C) $73,500D) $96,000

Priyanka Dharmik · Accepted Answer

Final Answer : A, Explanation :  The desired profit is 15% of the selling price, which is $480,000. 15% of $480,000 is $72,000. However, the company also wants to make a profit of $5,000 on each unit sold. The company plans to sell 1,500 units, so the total profit from unit sales will be $7,500. Adding this to the profit from the selling price gives a total desired profit of $79,500.

The dollar amount of desired profit from the production and sale of Magpie's product is

A) $175,000
B) $67,200
C) $73,500
D) $96,000

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