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Fantabulous Products sells 2,200 kayaks per year at a price of $490 per unit. Fantabulous sells in a highly competitive market and uses target pricing.
Fantabulous Products sells 2,200 kayaks per year at a price of $490 per unit. Fantabulous sells in a highly competitive market and uses target pricing. The company has $1,000,000 of assets, and the shareholders wish to make a profit of 8% on assets. Assume all products produced are sold. What is the target full product cost? Select one: A. $854,000 B. $1,078,000 C. $998.000 D. $954,000 O E. None of the above Companies are price-takers when Select one: A. they have little or no control over the prices of their products or services B. pricing approach emphasizes cost-plus pricing C. their products are unique D. there is very little competition E. None of the above Which of the following is a major consideration when analyzing a special pricing decision? Select one: A. The sales price must be high enough to cover any differential costs to fill the order. B. The sunk costs of the decision must not exceed the irrelevant costs. 0 C. The company must have a good stock turnover ratio. D. The profit margin of the special sale must be higher than the regular sales. E. None of the above
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