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

question 16

Multiple Choice

Revolve Company is a price-taker and uses a target-pricing approach.Refer to the following information: $$\begin{array} { | l | c | l|} \hline \text { Production volume } & 602,000& \text { units per year } \\\hline \text { Market price } & \$ 32 &\text { per unit } \\\hline \text { Desired operating income } & 15 \% &\text { of total assets } \\\hline \text { Total assets } & \$ 13,700,000 \\\hline\end{array}$$ What is the target full product cost in total for the year? Assume all units produced are sold.

• A)$90,300
• B)$17,209,000
• C)$13,700,000
• D)$2,055,000

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Definitions:

Neural Impulse

An electrical signal that travels along a neuron, enabling communication within the nervous system.

Acetylcholine

A neurotransmitter in the central and the peripheral nervous systems that plays a key role in the function of muscle action, heart rate, memory, and learning.

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A rare but serious illness caused by botulinum toxin, which can cause paralysis and is often linked to improperly prepared food.

Myelin Sheath

A fatty layer that encases and insulates the axons of neurons, facilitating faster transmission of electrical signals.