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

question 52

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 target full product cost in total for the year? Assume all units produced are sold.

• A) $18,000,000
• B) $15,915,000
• C) $13,900,000
• D) $2,085,000

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Definitions:

Stable Trait

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Adverse Situations

Unfavorable, difficult, or challenging circumstances that an individual may face, which can impact their well-being and responses.

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