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Back Bay Company is a price-taker and uses target pricing. Refer to the following information: Production volume 602,000 units per year Market price $32 per
Back Bay Company is a price-taker and uses target pricing. Refer to the following information:
Production volume | 602,000 | units per year |
Market price | $32 | per unit |
Desired operating income | 15% | of total assets |
Total assets | $13,700,000 |
|
What is the target full product cost per unit? (Round your answer to nearest cent.) Assume all units produced are sold.
- A.
$28.59
- B.
$32
- C.
$4.80
- D.
$27.20
- E.
none of the above.
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