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Polynesian Products Sells 1 800 Kayaks Per Year at a Price

question 118

Multiple Choice

Polynesian Products sells 1 800 kayaks per year at a price of $480 per unit. Polynesian sells in a highly competitive market and uses target pricing. The company has calculated its target full cost at $729 000 per year. Fixed costs are $400 000 per year and CANNOT be reduced. How much are the target variable costs?


Definitions:

Limited Time

A specific period which is restricted or short in duration, often used to highlight the availability of an offer or opportunity.

Speaking Via

The act of communicating or conveying information through a particular medium or channel.

Voice Messages

Audio recordings sent and received between individuals or groups through electronic devices as a form of communication.

One Week

A period of time consisting of seven consecutive days.

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