Origami Company is a price-taker and uses target pricing. Please refer to the following information: With the current cost structure, Origami 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, how much will the target variable costs per year be?

Question

Origami Company is a price-taker and uses target pricing. Please refer to the following information:  With the current cost structure, Origami 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, how much will the target variable costs per year be?

Quizplus · Accepted Answer

The Answer of Origami Company is a price-taker and uses target pricing. Please refer to the following information:  With the current cost structure, Origami 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, how much will the target variable costs per year be?

Origami Company Is a Price-Taker and Uses Target Pricing