Rica Company Is a Price-Taker and Uses Target Pricing

question 158

Multiple Choice

Rica Company is a price-taker and uses target pricing.Refer to the following information:
-How much is the target full product cost per unit? (Round your answer to nearest cent.) Assume all units produced are sold.

• A)$30
• B)$26.53
• C)$23.17
• D)$19.33

---

Definitions:

Net Income

The amount of money a company earns after deducting all expenses and tax obligations from its revenues.

Identifiable Net Assets (INA) Method

A valuation method in mergers and acquisitions that calculates the fair value of a company's net assets, excluding goodwill.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, representing items like brand name, good customer relations, and reputation.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing what the shareholders own outright.