Bookmarks People Tab Window Help x T 4464 PVD (1).pdf Assignment: a Topic: Module 6 - Discussion 9 om/courses/84454/discussion_topics/584489 This is a graded discussion: 5 points possible due Mar 22 Module 6 - Discussion 9 - Week 11 What is the difference between relevant and sunk costs? DEF Company is a price-taker and uses target pricing. Refer to the following information: Production volume Market price Desired operating income Total assets Variable cost per unit Fixed cost per year 602,000 units per year $30 per unit 17% of total assets $13,700,000 $18 per unit $5,400,000 per year With the current cost structure, DEF 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. Search entries or author Unread a Subscribe Reply MacBook Air