Galla IncOperates in a Highly Competitive Market Where the Market Price

question 90

Multiple Choice

Galla Inc.operates in a highly competitive market where the market price for its product is $170 per unit.Galla desires a $15 profit per unit.Galla expects to sell 5,000 units.Additional information is as follows: $$\begin{array}{l}\begin{array} { l l r } \text { Variable product cost per unit}&\$15\\\text { Variable administrative cost per unit}&10\\\text { Total fixed overhead}&45,000\\\text { Total fixed administrative}&18,000\end{array}\end{array}$$ Using target costing,what is the target cost?

• A)$135.00
• B)$160.00
• C)$130.00
• D)$145.00
• E)$155.00

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Definitions:

Mundane Tasks

Routine, everyday tasks that are typically considered boring or monotonous.

Complex Tasks

Tasks that involve multiple steps, decisions, or elements and require a higher level of cognitive engagement to complete.

Extrinsic Motivation

The drive to perform an activity due to external rewards or pressures, rather than for the satisfaction derived from the activity itself.

Intrinsic Motivation

The drive to engage in activities for their inherent satisfaction or enjoyment, rather than for some separable consequence.