Question
Rica Company is a price-taker and uses a target-pricing approach. Refer to the following information: Production volume 600,000 units per year Market price $30 per
Rica Company is a price-taker and uses a target-pricing approach. Refer to the following information:
| Production volume | 600,000 | units per year |
| Market price | $30 | per unit |
| Desired operating income | 15% | of total assets |
| Total assets | $13,900,000 |
|
How much is the desired profit for the year?
| $1,440,000 | ||
| $18,000,000 | ||
| $2,700,000 | ||
| $2,085,000 |
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Financial Accounting
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
9780470128848
