Back Bay Company Is a Price-Taker and Uses Target Pricing

question 64

Multiple Choice

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

• A)$32.00
• B)$28.59
• C)$4.80
• D)$27.20

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Definitions:

Precambrian Metamorphic Rocks

Rocks that were formed through metamorphism during the Precambrian era, before the emergence of a diverse life on Earth.

Paleozoic Rocks

Paleozoic rocks originated from the Paleozoic era, a significant geological time period marked by the development and diversification of early life forms, including the first fish, plants, and insects.

Precambrian Sedimentary Rocks

Sedimentary rocks formed during the Precambrian era, over 541 million years ago, before the abundance of complex life on Earth.

Upper Volcanic Unit

refers to the top layer of a volcanic formation, often characterized by the presence of solidified lava and volcanic rocks.