Polynesian Products Sells 1,800 Kayaks Per Year at a Price

question 100

Multiple Choice

Polynesian Products sells 1,800 kayaks per year at a price of $480 per unit. Polynesian sells in a highly competitive market and uses target pricing. The company has $900,000 of assets and the shareholders wish to make a profit of 15% on assets. How much is the target full cost?

• A) $864,000
• B) $729,000
• C) $135,000
• D) $712,500

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Definitions:

Electric Shock

A sudden discharge of electricity through a part of the body, which can cause injury or psychological impact.

Observational Learning

The process of acquiring new behaviors by watching the actions of others and the outcomes of those actions.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Systematic Desensitization

A therapeutic technique used in behavioral therapy to gradually reduce phobia, anxiety, or fear by exposing the individual to the feared object or context in a controlled manner.