Rica Company Is a Price-Taker and Uses Target Pricing

question 152

Multiple Choice

Rica Company is a price-taker and uses target pricing.Refer to the following information:
-With the current cost structure,Rica cannot achieve its profit goals.It will have to reduce either the fixed costs or the variable costs.Assuming that fixed costs cannot be reduced,what will be the target variable costs per unit per year? Assume all units produced are sold.(Round your answer to the nearest cent.)

• A)$26.53
• B)$9.33
• C)$17.19
• D)$18

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