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

question 172

Multiple Choice

Aguilar Company is a price-taker and uses target pricing.Refer to the following information: $$\begin{array} { | l | l | l | } \hline \text { Production volume } & \$ 01,000 & \text { units per year } \\\hline \text { Market price } & \$ 30 & \text { per unit } \\\hline \text { Desired operating income } & 17 \% & \text { of total assets } \\\hline \text { Total assets } & \$ 13,800,000 & \\\hline \text { Variable cost per unit } & \$ 19 & \text { per unit } \\\hline \text { Fixed cost per year } & \$ 5,500,000 & \text { per year } \\\hline\end{array}$$ With the current cost structure,Aguilar 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 unit per year? Assume all units produced are sold.(Round your answer to the nearest cent.)

• A) $5.10
• B) $11.00
• C) $16.95
• D) $19.00

Identify the various types of negotiable instruments and their characteristics.

Recognize the requirements and conditions for the negotiability of instruments.

Comprehend the roles and responsibilities of parties involved in the negotiation and endorsement of negotiable instruments.

Understand the implications of signatures and endorsements on negotiable instruments.

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Definitions:

HR Managers

Professionals who oversee and manage an organization's Human Resources department, responsible for policies, procedures, and programs related to employees.

Labour Supply

The total hours that workers in an economy are willing to work at a given real wage rate.

Strategy Implementation

The execution phase where strategies and plans are put into action as a part of the strategic management process to achieve organizational goals.

Performance Management

A systematic approach to improving individual and team activity and outcomes through setting performance standards and providing regular feedback.