Fantabulous Products Sells 2,000 Kayaks Per Year at a Price

question 82

Multiple Choice

Fantabulous Products sells 2,000 kayaks per year at a price of $450 per unit. Fantabulous sells in a highly competitive market and uses target pricing. The company has $1,000,000 of assets and the shareholders wish to make a profit of 18% on assets. How much is the target full product cost?

• A)$1,800,000
• B)$720,000
• C)$1,062,000
• D)$712,500

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Definitions:

Reinforcement

In psychology and organizational behavior, reinforcement refers to any process that strengthens or increases the likelihood of a specific response or behavior.

Internal Attribution

The inclination to attribute one's own actions and experiences to personal factors rather than to external factors.

Poor Performance

Describes below average or failing work output by an employee or organization, often requiring corrective measures.

Stereotyping

The act of assigning generalized characteristics to individuals based solely on membership in a particular group.