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:

Final Judgment

The last court ruling in a legal case that resolves the matters in dispute and determines the rights and obligations of the parties involved.

Federal Jurisdiction

The legal authority of the federal government to govern or legislate on certain issues and cases, as distinct from state jurisdiction.

Conditional Jurisdiction

A legal principle where a court has the authority to hear a case based on certain conditions being met.

Subject-Matter Jurisdiction

The power of a court over the type of case presented to it.