Rica Company Is a Price-Taker and Uses Target Pricing

question 69

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 fixed costs cannot be reduced, how much will be the target variable costs per unit per year? (Round your answer to the nearest cent.)

• A)$26.53
• B)$9.33
• C)$17.19
• D)$18

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Advocate

An individual who actively supports or argues in favor of a particular cause or policy.

Personal Credibility

Refers to the level of trustworthiness, reliability, and integrity observed or perceived in an individual by others.

Ethical Untruths

Statements or strategies that deliberately bend or distort the truth for ethical purposes, often used in complex moral situations.

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