Paper Tiger Stationary Company is a

pricetaker

and uses target pricing. Refer to the following information:

Production volume	600,000	units per year
Market price	$32	per unit
Desired operating income	17%	of total assets
Total assets	$2,000,000

What is the target full product cost per year? Assume all units produced are sold.

Question content area bottom

Part 1

A.

$18,860,000

B.

$34,000,000

C.

$19,200,000

D.

$10,800,000