Revolve Company Is a Price-Taker and Uses a Target-Pricing Approach

question 10

Multiple Choice

Revolve Company is a price-taker and uses a target-pricing approach.Refer to the following information: $$\begin{array} { | l | r|l| } \hline \text { Production volume } & 602,000 &\text { units per year } \\\hline \text { Market price } & \$ 30 &\text { per unit } \\\hline \text { Desired operating income } & 16 \%& \text { of total assets } \\\hline \text { Total assets } & \$ 13,700,000 \\\hline\end{array}$$ What is the target full product cost in total for the year? Assume all units produced are sold.

• A) $96,320
• B) $15,868,000
• C) $13,700,000
• D) $2,192,000

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Definitions:

National Ambient Air Quality Standards

Regulations established by the Environmental Protection Agency (EPA) to control air pollution by setting limits on the concentration of pollutants in the air.

EPA

The Environmental Protection Agency, a U.S. federal agency responsible for protecting human and environmental health.

Implementation Costs

Expenses associated with putting a plan, policy, or system into operation, including the costs of acquiring necessary materials, technology, and training.

Massachusetts v. EPA

A landmark Supreme Court case in which Massachusetts sued the Environmental Protection Agency for failing to regulate carbon dioxide and other greenhouse gases as pollutants.