Question 1: Potter Products has produced an electric coffee pot to complement its range of kitchen products. The new coffee pot can be sold at a target price of $46, and annual target sales volume for the coffee pot is 250 000. Potter has target operating profit of 20% of sales. Determine the target sales revenues.
a. $12 000 000
b. $1 200 000
c. $1 150 000
d. $11 500 000