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

question 175

Multiple Choice

Rica Company is a price-taker and uses a target-pricing approach.Refer to the following information: $$\begin{array} { | l | c | l|} \hline \text { Production volume } & 600,000 &\text { units per year } \\\hline \text { Market price } & \$ 30& \text { per unit } \\\hline \text { Desired operating income } & 17 \%& \text { of total assets } \\\hline \text { Total assets } & \$ 13,900,000 \\\hline\end{array}$$ What is the desired profit for the year?

• A)$102,000
• B)$18,000,000
• C)$4,100,000
• D)$2,363,000

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