Rica Company Is a Price-Taker and Uses Target Pricing How Much Is the Target Full Product Cost Per Unit

question 66

Multiple Choice

Rica Company is a price-taker and uses target pricing.Refer to the following information:
$$\begin{array} { | l | l | l | } \hline \text { Production volume } & \$ 601,000 & \text { units per year } \\\hline \text { Market price } & \$ 34 & \text { per unit } \\\hline \text { Desired operating profit } & 15 \% & \text { of total assets } \\\hline \text { Total assets } & \$ 13,700,000 & \\\hline\end{array}$$
How much is the target full product cost per unit? (Round your answer to nearest cent.) Assume all units produced are sold.

• A) $28.90
• B) $34.00
• C) $5.10
• D) $30.58

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Definitions:

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The lack of moral values, principles, and responsibilities, often leading to social problems such as crime and antisocial behavior.

The Veil

A metaphor for the barrier or separation between different realities or perceptions, often in a cultural or racial context.

Symbolic Boundary

Conceptual distinctions made by social actors to categorize objects, people, practices, and even time and space, that help to separate and maintain social groups.

Social Darwinism

A theory applying Darwin's concept of natural selection to societal groups, suggesting that social hierarchies and competition are natural and beneficial.