Paper Tiger Stationary Company Is a Price-Taker and Uses Target

question 52

Multiple Choice

Paper Tiger Stationary Company is a price-taker and uses target pricing.Refer to the following information: $$\begin{array} { | l | r | l | } \hline \text { Production volume } & 602,000 & \text { units per year } \\\hline \text { Market price } & \$ 30 & \text { per unit } \\\hline \text { Desired operating income } & 15 \% & \text { of total assets } \\\hline \text { Total assets } & \$ 1,800,000 & \\\hline\end{array}$$ What is the target full product cost per year? Assume all units produced are sold.

• A)$18,060,000
• B)$17,790,000
• C)$27,000,000
• D)$9,632,000

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Definitions:

Optometrist

A healthcare professional specializing in the examination of the eyes and visual systems for defects or abnormalities, prescribing corrective lenses or eye exercises.

Eyelid Margins

The edges of the eyelids where the eyelashes grow; important in eye health and function.

Intraocular Pressure

The fluid pressure inside the eye, important for maintaining the shape of the eye and the health of eye tissues.

Extraocular Muscles

The muscles surrounding the eyeball that enable it to move in different directions and maintain its position within the socket.