Origami Company Is a Price-Taker and Uses Target Pricing

question 136

Multiple Choice

Origami Company is a price-taker and uses target pricing. Please refer to the following information: How much is the target full cost per unit? (Please round to nearest cent.)

• A)$21.00
• B)$24.00
• C)$22.67
• D)$19.33

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Definitions:

Net Operating Income

A company's profit after subtracting its operating expenses, excluding taxes and interest.

Revenue And Spending Variances

The differences between actual and budgeted amounts for revenue and expenditures, which are analyzed to manage financial performance.

Flexible Budget

A budget designed to respond and adapt to changes in the level of operations or volume.

Plane Operating Costs

Expenses associated with operating an aircraft, including fuel, maintenance, crew salaries, and depreciation.