Rocky River Company Is a Price-Taker and Uses Target Pricing

question 8

Multiple Choice

Rocky River Company is a price-taker and uses target pricing.Refer to the following information: $$\begin{array} { | l | l | l | } \hline \text { Production volume } & 502,000 & \text { units per year } \\\hline \text { Market price } & \$ 30 & \text { per unit } \\\hline \text { Desired operating income } & 15 \% & \text { of total assets } \\\hline \text { Total assets } & \$ 13,700,000 & \\\hline\end{array}$$ What is the target full product cost per unit? (Round your answer to nearest cent.) Assume all units produced are sold.

• A) $30.00
• B) $26.59
• C) $4.50
• D) $25.50