Fowler Company Is a Price-Taker and Uses Target Pricing

question 41

Multiple Choice

Fowler Company is a price-taker and uses target pricing.Refer to the following information:

With the current cost structure,Fowler cannot achieve its profit goals.It will have to reduce either the fixed costs or the variable costs.Assuming that variable costs cannot be reduced,what are the target fixed costs per year? Assume all units produced are sold.

• A)$4,866,000
• B)$5,500,000
• C)$12,530,000
• D)$10,818,000

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Definitions:

HRM Functions

The diverse activities undertaken by Human Resource Management to optimize the performance and contribution of employees towards organizational objectives.

Business Performance

The evaluation of a company's operations and financial outcomes, often measured through metrics such as sales, profit, and growth.

Treating Employees

The practices and policies an organization adopts to handle, manage, and support its workforce, impacting their satisfaction, productivity, and loyalty.

Training

The process of teaching or developing in oneself or others, the skills and knowledge that relate to specific useful competencies, aimed at improving an individual's capability, capacity, productivity, and performance.