Origami Company is a price-taker and uses target pricing. Please refer to the following information:
$$\begin{array} { | l | r | r | }
\hline \text { Production volume } & 500,000 & \text { Units per year } \
\hline \text { Market price } & \$ 24.00 & \text { Per unit } \
\hline \text { Desired operating profit } & 12 \% & \text { Of total assets } \
\hline
\end{array}$$
Revenue at market price plus the desired operating profit equals the product's target full cost.

Question

Origami Company is a price-taker and uses target pricing. Please refer to the following information:
 $$\begin{array} { | l | r | r | } 
\hline \text { Production volume } & 500,000 & \text { Units per year } \
\hline \text { Market price } & \$ 24.00 & \text { Per unit } \
\hline \text { Desired operating profit } & 12 \% & \text { Of total assets } \
\hline
\end{array}$$ 
Revenue at market price plus the desired operating profit equals the product's target full cost.

Quizplus · Accepted Answer

The Answer of Origami Company is a price-taker and uses target pricing. Please refer to the following information:
 $$\begin{array} { | l | r | r | } 
\hline \text { Production volume } & 500,000 & \text { Units per year } \
\hline \text { Market price } & \$ 24.00 & \text { Per unit } \
\hline \text { Desired operating profit } & 12 \% & \text { Of total assets } \
\hline
\end{array}$$ 
Revenue at market price plus the desired operating profit equals the product's target full cost.

Origami Company Is a Price-Taker and Uses Target Pricing Revenue at Market Price Plus the Desired Operating Profit Equals