Komatsu Mfg

question 220

Multiple Choice

Komatsu Mfg. Co. uses target return pricing and expects to sell 40,000 units of its product in the coming year. Its fixed costs will be $500,000 and its variable costs will be about $20 per unit. If Komatsu seeks to earn a 20 percent return on its investment of $500,000, what price should it charge?

• A) $35.00
• B) $32.50
• C) $21.00
• D) $22.50
• E) $20.00

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Definitions:

Conscientiousness

An attribute denoting someone's knack for systematic arrangement, consistency in dependability, and an intense feeling of obligation.

Monozygotic Twins

Identical twins that result from one fertilized egg splitting and developing into two embryos, sharing 100% of their genetic material.

Dizygotic Twins

Also known as fraternal twins, they are siblings born from separate eggs fertilized by separate sperm cells, sharing 50% of their genetic material.

Extraversion

A personality trait characterized by sociability, talkativeness, assertiveness, and a high level of activity and enthusiasm.