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Wheeler Company is a price taker and uses a target - pricing approach. Refer to the following information: Production volume Market price Desired operating income
Wheeler Company is a price taker and uses a target - pricing approach. Refer to the following information: Production volume Market price Desired operating income Total assets 600,000 units per year $32 per unit 16% of total assets $13,900,000 What is the desired profit for the year? O A. $96,000 O B. $2,224,000 O C. $5,300,000 OD. $19,200,000 Fuller Industries is considering replacing a machine that is presently used in its production process. Which of the following amounts represents a sunk cost? Old Machine $55,000 Replacement Machine $45,000 5 Original cost Remaining useful life in years Current age in years Book value Current disposal value in cash Future disposal value in cash (in 5 years) Annual cash operating costs $30,000 $9,000 $0 $8,000 $0 $4,500 O A. $55,000 O B. $30,000 O C. $45,000 OD. $9,000
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