Origami Company Is a Price-Taker and Uses Target Pricing -
with the Current Cost Structure, Origami Cannot Achieve Its

question 80

Multiple Choice

Origami Company is a price-taker and uses target pricing. Please refer to the following information:
$$\begin{array} { | l | r | r | } \hline \text { Production volume } & 500,000 & \text { Units per year } \\\hline \text { Narket price } & \$ 24.00 & \text { Per unit } \\\hline \text { Pesired aperating profit } & 12 \% & \text { Of total assets } \\\hline \text { Tatal assets } & \$ 12,500,000 & \\\hline \text { Varinble edst per unit } & \$ 17.00 & \text { Per unit } \\\hline \text { Fixed cost per year } & \$ 3,000,000 & \text { Per year } \\\hline\end{array}$$
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With the current cost structure, Origami cannot achieve its profit goals. It will have to reduce either the fixed costs or the variable costs. Assuming that variable costs CANNOT be reduced, how much will the target fixed costs per year be?

• A) $2,000,000
• B) $1,500,000
• C) $2,500,000
• D) $800,000

Differentiate between various types of memory interference and their impacts on memory recall.

Understand the role of source amnesia in memory inaccuracies and its implications.

Recognize the influence of misinformation on memory formation and recall.

Understand the susceptibility of children to memory distortions compared to adults.

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Definitions:

Estimated Average Annual Income

An approximation of the amount of money one is expected to earn on average each year, considering various income sources over a specified period.

Average Investment

The mean value of all investments held over a specific period, used to assess overall investment performance.

Estimated Average Annual Income

An approximation of the amount of money an individual or business expects to earn in an average year.

Straight-Line Method

A method of amortizing a bond discount or premium that provides for equal amounts of discount (or premium) to be written off to interest expense each period.