Origami Company Is a Price-Taker and Uses Target Pricing -
How Much Is the Target Full Cost in Total

question 41

Multiple Choice

Origami Company is a price-taker and uses target pricing. Please refer to the following information:
$$\begin{array} { | l | r | r | } \hline \text { Production volume } & 500,000 & \text { Units per year } \\\hline \text { Narket price } & \$ 24.00 & \text { Per unit } \\\hline \text { Pesired aperating profit } & 12 \% & \text { Of total assets } \\\hline \text { Tatal assts } & \$ 12,500,000 & \\\hline\end{array}$$
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How much is the target full cost in total for the year?

• A) $1,440,000
• B) $10,500,000
• C) $12,000,000
• D) $1,500,000

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