Mallard Corporation Uses the Product Cost Concept of Product Pricing

question 95

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 unit selling price for the company's product is

• A) $19.35
• B) $15.75
• C) $22.05
• D) $21.25

---

Definitions:

Pure Chase Strategy

A demand matching or production strategy where output is adjusted to match demand precisely, reducing inventory levels to a minimum.

Subcontracting

The practice of assigning part of the obligations and tasks under a contract to another party, often to specialize or expedite processes.

Overtime

Additional time worked beyond the regular working hours, usually compensated at a higher pay rate.

Workforce

Refers to the pool of employees or labor available to an organization or country, including both the employed and those seeking employment.