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

question 176

Multiple Choice

Star Stationery Company is a price-taker and uses target pricing.Refer to the following information: $$\begin{array} { | l |r |l| } \hline \text { Production volume } & 602,000 &\text { units per year } \\\hline \text { Market price } & \$ 34& \text { per unit } \\\hline \text { Desired operating income } & 17 \% &\text { of total assets } \\\hline \text { Total assets } & \$ 1,600,000 \\\hline\end{array}$$ What is the target full product cost per year? Assume all units produced are sold.

• A) $20,468,000
• B) $20,196,000
• C) $27,200,000
• D) $10,836,000

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Definitions:

Internet Auction

An online platform where goods or services are sold to the highest bidder through a competitive bidding process.

Marketer-To-Consumer

A business model focused on direct communication and transaction between marketers and consumers, bypassing intermediaries.

Internet-Enabled Technology

Devices and systems that can connect to the internet to send or receive data and provide enhanced functionality.

Customization

The method of customizing goods or services to satisfy the unique requirements or tastes of each customer.