Aguilar Company Is a Price-Taker and Uses Target Pricing

question 43

Multiple Choice

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

With the current cost structure,Aguilar cannot achieve its profit goals.It will have to reduce either the fixed costs or the variable costs.Assuming that fixed costs cannot be reduced,what are the target variable costs per unit per year? Assume all units produced are sold.(Round your answer to the nearest cent. )

• A)$4.50
• B)$10.00
• C)$17.55
• D)$20.00

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Definitions:

Ardashir I

The founder of the Sasanian Empire in Persia (224–651 CE), known for unifying various Iranian regions under his rule and establishing Zoroastrianism as the state religion.

Immovable Dedication

An offering or dedication to a deity or sacred place that is not meant to be moved, such as a statue, shrine, or architectural feature integrated within a sacred site.

Dense

Having parts closely compacted together; thick or crowded, can refer to both physical objects and abstract concepts like population or ideas.

Cylinder Seal

A cylindrical piece of stone usually about an inch or so in height, decorated with an incised design, so that a raised pattern is left when the seal is rolled over soft clay. In the ancient Near East, documents, storage jars, and other important possessions were signed, sealed, and identified in this way. Stamp seals are an earlier, flat form of seal used for similar purposes.