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Meson Productions Is a Price-Taker

question 44

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Meson Productions is a price-taker.It produces large spools of electrical wire in a highly competitive market,so it practices target pricing.The current market price of the electric wire is $800 per unit.The company has $3,000,000 in assets and its shareholders expect a return of 6% on assets.The company provides the following information: Meson Productions is a price-taker.It produces large spools of electrical wire in a highly competitive market,so it practices target pricing.The current market price of the electric wire is $800 per unit.The company has $3,000,000 in assets and its shareholders expect a return of 6% on assets.The company provides the following information:   If fixed costs cannot be reduced,how much reduction in variable costs will be needed to achieve the profit target? A) $180,000 B) $12,000,000 C) $2,180,000 D) $4,200,000 If fixed costs cannot be reduced,how much reduction in variable costs will be needed to achieve the profit target?

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