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How do you compute the target variable costs per unit and target fixed costs? 1. Origami Company is a price taker and uses target pricing.

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How do you compute the target variable costs per unit and target fixed costs? 1. Origami Company is a price taker and uses target pricing. Please refer to the following information: Production volume 500,000 Units per year Market price $24.00 Per Desired operating profit Of total assets Total assets $12,500,000 Variable cost per unit $17.00 Per unit Fixed cost per year $3,000,000 Per year With the current cost structure, Origami cannot achieve its profit goals. It will have to reduce either the fixed costs or the variable costs Asuming that fixed costs CANNOT be reduced, how much will the target variable costs per unit be? Please round to that out) A) 514.67 B) $16.25 C) $15.00 D) $17.50 1. Polynesian Products selle 1.800 kayaks per year at a price of 5480 per unit. Polynesian sells in a highly competitive market and uses target pricing The company has calculated target full costat 5729,000 per year. Total variable costs are $396,000 per year and cannot be reduced. How much are the targeted costa? R 11000 196.000 D) $333,000 How do you calculate how many units should the company produce to maximize profits? 1. Easy Cook Company manufactures two products: toaster oven and bread machines. The following data se valable: Toaster Ovens Bread Machines Sale price $135 560 Variable costs $38 $63 Easy Cook can manufacture five fouter Ovens per machine hour and three bread machines per machine hour. Easy Cook's production capacity is 1.500 machine hours per month Marketing limitations indicate that Easy Cook can sell a maximum of 5,000 toasters a month, and 3,000 bread machines per month To maximize protits, what product and how many units should the company produce in a month? A) 4,500 bread machines B) 2,500 toaster ovens and 3,000 bread machines C)3,750 tourter oven and 2,250 bread machines D) 7,500 toaster ovens

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