Donnelley Products Sells 2,000 Kayaks Per Year at a Sales

question 27

Multiple Choice

Donnelley Products sells 2,000 kayaks per year at a sales price of $460 per unit.Donnelley sells in a highly competitive market and uses target pricing.The company has $1,000,000 of assets,and the shareholders wish to make a profit of 17% on assets.Variable cost is $200 per unit and cannot be reduced.Assume all products produced are sold.What are the target fixed costs?

• A) $920,000
• B) $750,000
• C) $170,000
• D) $350,000

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Definitions:

Recognition Programs

Recognition Programs are organizational initiatives designed to acknowledge and reward employees' contributions, achievements, and performance.

Behaviour Modelling Training

A training method that involves demonstrating desired behaviors and allowing trainees to practice and replicate these actions in a learning context.

Social Reinforcement

The use of positive or negative feedback from peers or society to encourage or discourage certain behaviors or attitudes.

Employee Recognition Programs

Formal organizational programs that publicly recognize and reward employees for specific behaviours.