Mallard Corporation Uses the Product Cost Concept of Product Pricing

question 153

Multiple Choice

Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000. The cost per unit for the production of the company's product is

• A) $13.15
• B) $17.22
• C) $15.40
• D) $15.75

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Definitions:

Broad Average

A general or wide-ranging statistical measure that represents the typical value of a set of numbers or quantities.

IQ Score

An IQ score is a standardized measure of human intelligence and cognitive abilities, based on a series of tests that compare individual performance to age-group norms.

Binet-Simon Scale

Historically significant intelligence test developed by Alfred Binet and Théodore Simon, serving as a basis for modern IQ testing by measuring various cognitive abilities.

Mental Age

A measure of an individual's mental attainment based on the average age at which normal individuals achieve a particular score on a test of intelligence or cognitive ability.