Meson Productions Is a Price-Taker If Variable Costs Cannot Be Reduced,how Much Reduction in Fixed

question 1

Multiple Choice

Meson Productions is a price-taker.Meson produces large spools of electrical wire in a highly competitive market; thus,the company uses target pricing.The current market price of the electric wire is $760 per unit.The company has $3,200,000 in average assets,and the desired profit is a return of 5% on assets.Assume all products produced are sold.The company provides the following information: $$\begin{array} { | l | r | l | } \hline \text { Sales volume } & 110,000 &\text { units per year } \\\hline \text { Variable costs } & \$ 670 & \text { per unit } \\\hline \text { Fixed costs } & \$ 13,000,000 & \text { per year } \\\hline\end{array}$$ If variable costs cannot be reduced,how much reduction in fixed costs will be needed to achieve the profit target?

• A) $3,260,000
• B) $13,000,000
• C) $3,100,000
• D) $13,160,000

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The process by which people seek affirmation of their own beliefs, attitudes, and values from others who are similar.

Symbolic Interactionism

A sociological perspective that emphasizes the role of symbols and language in the creation of social realities and individual identities.

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A relationship where two variables influence each other, with each variable being both a cause and an effect in the relationship.

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