Ortiz Company Is a Price-Taker and Uses Target Pricing With the Current Cost Structure,Ortiz Cannot Achieve Its Profit Goals

question 13

Multiple Choice

Ortiz Company is a price-taker and uses target pricing.Refer to the following information: $$\begin{array} { | l | l | l | } \hline \text { Production volume } & \$ 02,000 & \text { units per year } \\\hline \text { Market price } & \$ 30 & \text { per unit } \\\hline \text { Desired operating income } & 17 \% & \text { of total assets } \\\hline \text { Total assets } & \$ 13,800,000 & \\\hline \text { Variable cost per unit } & \$ 20 & \text { per unit } \\\hline \text { Fixed cost per year } & \$ 5,600,000 & \text { per year } \\\hline\end{array}$$ With the current cost structure,Ortiz cannot achieve its profit goals.It will have to reduce either the fixed costs or the variable costs.Assuming that fixed costs cannot be reduced,what are the target variable costs per year? Assume all units produced are sold.

• A) $10,114,000
• B) $12,040,000
• C) $5,600,000
• D) $15,714,000

Identify and explain different strategies for memory retention such as rehearsal.

Differentiate between explicit and implicit memory and understand their roles in conscious and unconscious memory recall.

Understand the significance of recognition and relearning as mechanisms for retrieving information from long-term memory.

Recognize the importance of the amygdala in processing emotional responses and memories.

---

Definitions:

Mutual Assent

An agreement between parties that is reached after each party has a clear understanding of the terms and decides to enter the agreement.

Valid Offer

A proposal made by one party to another intending to create a legally binding agreement, subject to acceptance.

Accepted Properly

Refers to the act of formally agreeing to the terms of an offer or contract in a manner that meets all legal requirements.

Voidable

Describes a contract or agreement that may be nullified or cancelled by one of the parties involved.