Origami Company is a price-taker and uses target pricing. Please refer to the following information:
$$\begin{array} { | l | r | r | }
\hline \text { Production volume } & 500,000 & \text { Units per year } \
\hline \text { Narket price } & \$ 24.00 & \text { Per unit } \
\hline \text { Pesired aperating profit } & 12 \% & \text { Of total assets } \
\hline \text { Tatal assts } & \$ 12,500,000 & \
\hline
\end{array}$$
-
How much is the desired profit for the year?

Question

Origami Company is a price-taker and uses target pricing. Please refer to the following information:
$$\begin{array} { | l | r | r | } 
\hline \text { Production volume } & 500,000 & \text { Units per year } \
\hline \text { Narket price } & \$ 24.00 & \text { Per unit } \
\hline \text { Pesired aperating profit } & 12 \% & \text { Of total assets } \
\hline \text { Tatal assts } & \$ 12,500,000 & \
\hline
\end{array}$$
-
How much is the desired profit for the year?

Quizplus · Accepted Answer

The desired profit is calculated as 12% of total assets, which is 0.12 * $12,500,000 = $1,500,000.

Origami Company Is a Price-Taker and Uses Target Pricing - How Much Is the Desired Profit for the Year

Origami Company Is a Price-Taker and Uses Target Pricing -
How Much Is the Desired Profit for the Year