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

question 103

Multiple Choice

Revolve Company is a price-taker and uses a target-pricing approach.Refer to the following information:

What is the target full product cost in total for the year? Assume all units produced are sold.

• A)$96,320
• B)$15,868,000
• C)$13,700,000
• D)$2,192,000

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Definitions:

Cash Sales Policy

A cash sales policy is a business approach where transactions are conducted strictly on a cash basis, without offering credit to customers.

Discount Period

The discount period is the time frame in which a payment can be made at a discounted rate from the regular price or before it becomes due.

Percentage Cost

The cost of a financial transaction or investment expressed as a percentage of the total amount.

Credit Information

Data regarding an individual's or company's credit history, used by lenders to assess creditworthiness.