Back Bay Company Is a Price-Taker and Uses Target Pricing

question 37

Multiple Choice

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

What is the target full product cost per unit? (Round your answer to nearest cent. ) Assume all units produced are sold.

• A)$32.00
• B)$28.13
• C)$5.44
• D)$26.56

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Definitions:

Demand

The desire to purchase goods and services backed by the ability and willingness to pay a price.

Euros

The official currency of the eurozone, which is used by 19 of the 27 European Union countries.

Downsloping

Describes a line or curve on a graph that proceeds from upper left to lower right, often used in economics to represent the decrease in demand as prices increase.

Foreign Exchange Market

The global marketplace for buying and selling national currencies, determining exchange rates.