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:

Mediator

A neutral third party who assists in resolving disputes by facilitating communication between conflicting parties with the goal of reaching an agreement.

Customer Service Ethics

Moral guidelines that govern the behavior and practices of individuals providing services to customers.

Quality Of The Services

The degree to which a service meets the customer's expectations and requirements, often judged on criteria like efficiency, effectiveness, and emotional satisfaction.

Thanking The Customer

The act of expressing gratitude to customers, acknowledging their patronage, and reinforcing a positive relationship.