Wheeler Company Is a Price-Taker and Uses a Target-Pricing Approach

question 118

Multiple Choice

Wheeler Company is a price-taker and uses a target-pricing approach. Refer to the following information: $$\begin{array} { | l | r | l | } \hline \text { Production volume } & 600,000 & \text { units per year } \\\hline \text { Market price } & \$ 32 & \text { per unit } \\\hline \text { Desired operating income } & 17 \% & \text { of total assets } \\\hline \text { Total assets } & \$ 13,700,000 & \\\hline\end{array}$$ What is the desired profit for the year?

• A) $102,000
• B) $19,200,000
• C) $5,500,000
• D) $2,329,000

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