Wheeler Company Is a Price-Taker and Uses a Target-Pricing Approach

question 125

Multiple Choice

Wheeler Company is a price-taker and uses a target-pricing approach.Refer to the following information: $$\begin{array} { | l | l | l | } \hline \text { Production volume } & 500,000 & \text { units per year } \\\hline \text { Market price } & \$ 34 & \text { per unit } \\\hline \text { Desired operating income } & 17 \% & \text { of total assets } \\\hline \text { Total assets } & \$ 13,800,000 & \\\hline\end{array}$$ What is the desired profit for the year?

• A) $102,000
• B) $20,400,000
• C) $6,600,000
• D) $2,346,000

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Definitions:

Comparative Reasoning

A method of reasoning in which two or more entities are compared to ascertain their similarities and differences.

Symphony

An elaborate musical composition for full orchestra, typically in four movements, at least one of which is traditionally in sonata form.

Comparative Reasoning

Comparative reasoning involves evaluating the similarities and differences between two or more entities to make a judgment or draw a conclusion.

Logical Perspective

A viewpoint or analysis based on principles of logic, emphasizing coherence, consistency, and validity in reasoning.