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

question 170

Multiple Choice

Wheeler Company is a price-taker and uses a target-pricing approach.Refer to the following information: $$\begin{array} { | l | l | l | } \hline \text { Production volume } & \$ 00,000 & \text { units per year } \\\hline \text { Market price } & \$ 34 & \text { per unit } \\\hline \text { Desired operating income } & 17 \% & \text { of total assets } \\\hline \text { Total assets } & \$ 13,800,000 & \\\hline\end{array}$$ What is the desired profit for the year?

• A) $102,000
• B) $20,400,000
• C) $6,600,000
• D) $2,346,000

---

Definitions:

Obedience

When a person follows the orders of a person in authority.

Conformity

The altering of your own behaviors and opinions to match those of other people or to match other people’s expectations.

Compliance

The tendency to agree to do things requested by others.

Obedience

The act of following the directions or commands of an authority figure.