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Belova Company is a price-taker and uses target pricing. Refer to the following information: 600,000 units per year Production volume Market price Desired operating income
Belova Company is a price-taker and uses target pricing. Refer to the following information: 600,000 units per year Production volume Market price Desired operating income Total assets Variable cost per unit Fixed cost per year 18. Whatis the desired profit for the year? Assume all units produced are sold. (Round your answer to the nearest cent.) 19. Assuming that fixed costs cannot be reduced, what is the target full product cost per unit? (Round your answer to nearest cent.) Assume all units produced are sold 20%! of total assets $20 per unit $5,600,000 per year 20.With the current cost structure, Belova 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.)
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