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

question 47

Multiple Choice

Discourse Stationery Company is a price-taker and uses target pricing.The company has completed an analysis of its revenues,costs,and desired profits and has calculated its target full product cost.Refer to the following information:

Actual costs are currently higher than target full product cost.Assume all products produced are sold.Assuming that variable costs are dependent on commodity prices and cannot be reduced,what is the target fixed cost?

• A)$230,000
• B)$420,000
• C)$80,000
• D)$500,000

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Abnormal Anxiety

Anxiety that is excessive, disproportionate to the actual threat or challenge, or persists beyond developmentally appropriate periods, often impacting daily functioning.

Excessive

Amounts or actions that go beyond what is normal, necessary, or reasonable, often leading to negative outcomes.

Important Things

Generally refers to items or aspects that hold significant value or priority in a given context.