Rocky River Company is a price-taker and uses target pricing. Refer to the following information: Production volume 600,000 units per year Market price $32.00 per
Rocky River Company is a price-taker and uses target pricing. Refer to the following information:
Production volume 600,000 units per year
Market price $32.00 per unit
Desired operating income 17% of total assets
Total assets $13,700,000
What is the target full product cost per unit? (Round your answer to the nearest cent.) Assume all units produced are sold.
A. $26.56
B. $32.00
c. $5.44
D. $28.12
Step by Step Solution
3.52 Rating (149 Votes )
There are 3 Steps involved in it
Step: 1
Answer D 2812 Explanation Total revenue 60...
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Timothy Doupnik, Hector Perera
4th edition
77862201, 978-0077760298, 77760298, 978-0077862206
