Rica Company Is a Price-Taker and Uses a Target-Pricing Approach

question 87

Multiple Choice

Rica Company is a price-taker and uses a target-pricing approach. Refer to the following information: $$\begin{array} { | l | r | l | } \hline\text { Production volume } & 600,000 & \text { units per year } \\\hline \text { Market price } & \$ 30 & \text { per unit } \\\hline \text { Desired operating income } & 15 \% & \text { of total assets } \\\hline \text { Total assets } & \$ 13,900,000 & \\\hline\end{array}$$ How much is the desired profit for the year?

• A) $1,440,000
• B) $18,000,000
• C) $2,700,000
• D) $2,085,000

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Definitions:

Criminologists

Social scientists who study crime, including its causes, consequences, and methods for prevention, focusing on societal and individual factors.

Social Environment

The immediate physical and social setting in which people live or in which something happens or develops.

Criminal Status

The designation of an individual or an act as illegal or criminal by legal authority.

Social Factors

Elements that influence society and individual behaviors, including economics, family structures, education, and culture.