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

question 134

Multiple Choice

Determinant Company is a price-taker and uses a target-pricing approach.Refer to the following information: $$\begin{array} { | l | l | l | } \hline \text { Production volume } & \$ 01,000 & \text { units per year } \\\hline \text { Market price } & \$ 34 & \text { per unit } \\\hline \text { Desired operating income } & 15 \% & \text { of total assets } \\\hline \text { Total assets } & \$ 13,900,000 & \\\hline\end{array}$$ What is the target full product cost in total for the year? Assume all units produced are sold.

• A) $90,150
• B) $18,349,000
• C) $13,900,000
• D) $2,085,000

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Definitions:

Plasma Membrane

A thin, flexible barrier that surrounds a cell, regulating the movement of substances in and out of the cell.

Ribosomes

Ribosomes are cellular structures that synthesize proteins from amino acids during the process of translation, found in both prokaryotic and eukaryotic cells.

Endoplasmic Reticulum

A network of membranous tubules within the cytoplasm of a cell, involved in the transport of materials.

Cell Theory

A fundamental biological principle stating that all living organisms are composed of cells, which are the basic unit of life.