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Origami Company Is a Price-Taker and Uses Target Pricing

question 147

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Origami Company is a price-taker and uses target pricing. Please refer to the following information: Origami Company is a price-taker and uses target pricing. Please refer to the following information:   With the current cost structure, Origami 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 the target fixed costs per year be? A) $2,000,000 B) $1,500,000 C) $2,500,000 D) $800,000 With the current cost structure, Origami 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 the target fixed costs per year be?

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