Rica Company Is a Price-Taker and Uses Target Pricing

question 129

Multiple Choice

Rica Company is a price-taker and uses target pricing. Refer to the following information: With the current cost structure, Rica 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 be the target fixed costs per year?

• A)$5,115,000
• B)$5,600,000
• C)$10,315,000
• D)$5,200,000

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Definitions:

Deep Relaxation

A state of profound mental and physical calm achieved through techniques such as meditation, guided imagery, or deep breathing exercises.

REM Sleep

A stage of sleep characterized by rapid eye movements, during which dreaming often occurs and brain activity resembles that of an awake state.

Sleep Deprivation

A condition resulting from insufficient sleep, which can affect cognitive functions, emotional well-being, and physical health.

Slow-wave Sleep

A deep phase of sleep characterized by slow brain waves, where the brain and body have the opportunity to rejuvenate and consolidate memories.