Star Stationery Company Is a Price-Taker and Uses Target Pricing

question 17

Multiple Choice

Star Stationery Company is a price-taker and uses target pricing.Refer to the following information: $$\begin{array} { | l | c | l|} \hline \text { Production volume } & 600,000& \text { units per year } \\\hline \text { Market price } & \$ 30& \text { per unit } \\\hline \text { Desired operating income } & 15 \% &\text { of total assets } \\\hline \text { Total assets } & \$ 1,800,000 \\\hline\end{array}$$ What is the target full product cost per year? Assume all units produced are sold.

• A)$18,000,000
• B)$17,730,000
• C)$27,000,000
• D)$9,600,000

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