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

question 136

Multiple Choice

Origami Company is a price-taker and uses target pricing. Please refer to the following information:
$\begin{array}{|l|r|r|}\hline \text { Production volume } & 500,000 & \text { Units per year } \\\hline \text { Market price } & \$ 24.00 & \text { Per unit } \\\hline \text { Desired operating profit } & 12 \% & \text { Of total asset } \\\hline \text { Total assets } & \$ 12,500,000 & \\\hline\end{array}$
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How much is the target full cost per unit? (Please round to nearest cent.)

• A) $21.00
• B) $24.00
• C) $22.67
• D) $19.33

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Definitions:

Active-voice Sentences

Sentences in which the subject performs the action expressed by the verb, making the writing clearer and more direct.

Concise

Being brief and to the point without sacrificing necessary details.

Business Writing

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Active Voice

Active voice is a sentence construction where the subject of the sentence performs the action expressed by the verb, emphasizing the doer of the action.