Rica Company Is a Price-Taker and Uses Target Pricing -How Much Is the Target Full Product Cost Per Unit

question 134

Multiple Choice

Rica Company is a price-taker and uses target pricing. 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 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

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