Question
ulian Company is a priceminus?taker and uses target pricing. Refer to the following? information: Production volume 602 comma 000602,000 units per year Market price $
ulian Company is a
priceminus?taker
and uses target pricing. Refer to the following? information:
Production volume | 602 comma 000602,000 | units per year |
Market price | $ 32$32 | per unit |
Desired operating income | 1717?% | of total assets |
Total assets | $ 13 comma 900 comma 000$13,900,000 | |
Variable cost per unit | $ 19$19 | per unit |
Fixed cost per year | $ 5 comma 600 comma 000$5,600,000 | per year |
With the current cost? structure, Julian cannot achieve its profit goals. It will have to reduce either the fixed costs or the variable costs. Assuming that fixed costs cannot be? reduced, what are the target variable costs per unit per? year? Assume all units produced are sold.? (Round your answer to the nearest? cent.)??
A.
$ 13.00$13.00
B.
$ 5.44$5.44
C.
$ 18.77$18.77
D.
$ 19.00$19.00
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