Julian Company Is a Price-Taker and Uses Target Pricing

question 171

Multiple Choice

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

With the current cost structure,Julian 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)$5.12
• B)$12.00
• C)$19.03
• D)$20.00

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Definitions:

Collaborating

The act of working together with one or more parties to achieve a common goal or complete a task.

Assertiveness

The quality of being self-assured and confident without being aggressive.

Cooperation

The process of groups or individuals working together to achieve a common goal or outcome.

Personality Clashes

Conflicts or incompatibilities between individuals arising from differences in their personalities, values, or beliefs, often affecting interpersonal relations and team dynamics.