Cassa Company Is a Price-Taker and Uses Target Pricing With the Current Cost Structure,Cassa Cannot Achieve Its Profit Goals

question 56

Multiple Choice

Cassa Company is a price-taker and uses target pricing.Refer to the following information: $$\begin{array} { | l | r | l | } \hline \text { Production volume } & 601,000 & \text { units per year } \\\hline \text { Market price } & \$ 32 & \text { per unit } \\\hline \text { Desired operating income } & 16 \% & \text { of total assets } \\\hline \text { Total assets } & \$ 13,900,000 & \\\hline \text { Variable cost per unit } & \$ 20 & \text { per unit } \\\hline \text { Fixed cost per year } & \$ 5,400,000 & \text { per year } \\\hline\end{array}$$ With the current cost structure,Cassa cannot achieve its profit goals.It will have to reduce either the fixed costs or the variable costs.Assuming that fixed costs cannot be reduced,what are the target variable costs per year? Assume all units produced are sold.

• A)$11,608,000
• B)$12,020,000
• C)$5,400,000
• D)$17,008,000

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Environmental Changes

Alterations in the external surroundings that can impact an organization's strategy, operations, or sustainability efforts.

Qualitative Models

Approaches in research and analysis that focus on the qualities, characteristics, and meanings of phenomena rather than numerical data.

Stable Markets

Markets characterized by steady demand, predictable competition, and consistent growth, with minimal fluctuations.

Demand For Labour

The total amount of workers that employers want to hire at a given wage rate and time.