Galla Inc Operates in a Highly Competitive Market Where the Market

question 109

Multiple Choice

Galla Inc. operates in a highly competitive market where the market price for its product is $170 per unit. Galla desires a $15 profit per unit. Galla expects to sell 5,000 units. Additional information is as follows: Using target costing, what is the target cost?

• A) $135.00
• B) $160.00
• C) $130.00
• D) $145.00
• E) $155.00

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Definitions:

Objective Thinker

A person who relies on factual information and rational analysis to form judgments and make decisions, avoiding biases and subjective influences.

Team Leaders

Individuals who are responsible for guiding, directing, and motivating members of a group to achieve its objectives.

Reward

Recognition or compensation given for achievement, service, or performance, serving as a motivator or incentive in various contexts.

Punishment Distribution

Describes the process and principles by which penalties are allocated or assigned within an organization or system.