Gotham Products Is a Price-Taker and Uses Target Pricing

question 61

Multiple Choice

Gotham Products is a price-taker and uses target pricing. Gotham has just done an analysis of their revenues, costs and desired profits, and has calculated its target full product cost. Please refer to the following information: Actual costs are currently higher than target full product cost. Assuming that variable costs are dependent on commodity prices and cannot be reduced, how much is the target fixed cost?

• A)$180,000
• B)$300,000
• C)$200,000
• D)$500,000

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Definitions:

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Individuals under the age of 18 who have physical or mental impairments that substantially limit one or more major life activities.