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

question 70

Multiple Choice

Rica Company is a price-taker and uses a target-pricing approach. Refer to the following information: $\begin{array}{|l|r|r|}\hline\text { Production volume } & 600,000& \text { units per year } \\\hline \text { Market price } & \$ 30 &\text { per unit }\\\hline \text { Desired operating income } & 15 \% &\text { of total assets } \\\hline \text { Total assets } & \$ 13,900,000\\\hline\end{array}$
-How much is the desired profit for the year?

• A) $1,440,000
• B) $18,000,000
• C) $2,700,000
• D) $2,085,000

Comprehend the factors that contribute to a country's economic freedom.

Recognize how government policies, like tariffs, can impact international business operations.

Understand the differences between state-owned, state-supported, and private enterprises and their implications for international business.

Analyze the impact of significant political events (e.g., Brexit) on international business.

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Definitions:

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Fixed-interval Schedule

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.

Response Rate

The frequency of occurrence or the proportion of a population that responds to a particular stimulus or treatment in a given period.