Back Bay Company Is a Price-Taker and Uses Target Pricing

question 69

Multiple Choice

Back Bay Company is a price-taker and uses target pricing.Refer to the following information: $$\begin{array} { | l | r | l | } \hline \text { Production volume } & 602,000 & \text { units per year } \\\hline \text { Market price } & \$ 32 & \text { per unit } \\\hline \text { Desired operating income } & 17 \% & \text { of total assets } \\\hline \text { Total assets } & \$ 13,700,000 & \\\hline\end{array}$$ What is the target full product cost per unit? (Round your answer to nearest cent.) Assume all units produced are sold.

• A) $32.00
• B) $28.13
• C) $5.44
• D) $26.56

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Definitions:

Positive Influences

Factors or forces that lead to beneficial outcomes, encouraging growth, improvements, or beneficial changes in behavior.

Negative Influences

These are factors or forces that can lead to adverse outcomes or detrimental effects on a person’s behavior, decisions, or outlook.

Gilligan

Refers to Carol Gilligan, an American feminist, ethicist, and psychologist best known for her work on ethical relationships and moral development, particularly in women.

Lawrence Kohlberg

A psychologist best known for his theory of stages of moral development, which describes how individuals evolve in their understanding of morality.