Gotham Products is a price-taker and uses target pricing.Please refer to the following information:
$$\begin{array} { | l | l | l | }
\hline \text { Production volume } & \$ 602,000 & \text { units per year } \
\hline \text { Market price } & \$ 34 & \text { per unit } \
\hline \text { Desired operating profit } & 17 \% & \text { of total assets } \
\hline \text { Total assets } & \$ 1,800,000 & \
\hline
\end{array}$$
How much is the target full product cost per year? Assume all units produced are sold.

Question

Gotham Products is a price-taker and uses target pricing.Please refer to the following information:
$$\begin{array} { | l | l | l | } 
\hline \text { Production volume } & \$ 602,000 & \text { units per year } \
\hline \text { Market price } & \$ 34 & \text { per unit } \
\hline \text { Desired operating profit } & 17 \% & \text { of total assets } \
\hline \text { Total assets } & \$ 1,800,000 & \
\hline
\end{array}$$
How much is the target full product cost per year? Assume all units produced are sold.

Quizplus · Accepted Answer

The Answer of Gotham Products is a price-taker and uses target pricing.Please refer to the following information:
$$\begin{array} { | l | l | l | } 
\hline \text { Production volume } & \$ 602,000 & \text { units per year } \
\hline \text { Market price } & \$ 34 & \text { per unit } \
\hline \text { Desired operating profit } & 17 \% & \text { of total assets } \
\hline \text { Total assets } & \$ 1,800,000 & \
\hline
\end{array}$$
How much is the target full product cost per year? Assume all units produced are sold.

Gotham Products Is a Price-Taker and Uses Target Pricing How Much Is the Target Full Product Cost Per Year