Gotham Products Is a Price-Taker and Uses Target Pricing How Much Is the Target Full Product Cost Per Year

question 77

Multiple Choice

Gotham Products is a price-taker and uses target pricing. Please refer to the following information: $$\begin{array} { | l | r | l | } \hline \text { Production volume } & 300,000 & \text { units per year } \\\hline \text { Market price } & \$ 3 & \text { per unit } \\\hline \text { Desired operating income } & 15 \% & \text { of total assets } \\\hline \text { Total assets } & \$ 2,000,000 & \\\hline\end{array}$$ How much is the target full product cost per year? Assume all units produced are sold.

• A) $900,000
• B) $600,000
• C) $300,000
• D) $390,000

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Definitions:

Cultural Ageism

Discrimination or prejudice against individuals based on their age, particularly within cultural contexts or practices, leading to stereotypes and marginalization.

Ephebophobic

Having an irrational fear of youth or young people.

Normative

Relating to an ideal standard or model, or being based on what is considered to be the normal or correct way of doing something.

Economic

Relating to the system of production, distribution, and consumption of goods and services within a society or geographical area.