Donnelley Products Sells 2,500 Kayaks Per Year at a Sales

question 62

Multiple Choice

Donnelley Products sells 2,500 kayaks per year at a sales price of $470 per unit.Donnelley sells in a highly competitive market and uses target pricing.The company has $1,000,000 of assets,and the shareholders wish to make a profit of 16% on assets.Variable cost is $180 per unit and cannot be reduced.Assume all products produced are sold.What are the target fixed costs?

• A)$1,175,000
• B)$1,015,000
• C)$160,000
• D)$565,000

---

Definitions:

Capillaries

The smallest blood vessels in the body's circulatory system, responsible for the exchange of oxygen, nutrients, and waste products between blood and tissues.

Veins

Blood vessels that carry blood towards the heart, typically carrying deoxygenated blood from various parts of the body.

Existential Intelligence

A term from Howard Gardner's theory of multiple intelligences, highlighting an individual's capacity to tackle deep questions about human existence, such as the meaning of life, why we die, and how we got here.

Fluid Intelligence

The faculty to use rational thought and address challenges in new contexts without the help of learned material.