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Determinant Company is a price - taker and uses a target - pricing approach. Refer to the following information: Production volume 601,000 units per year $32 per unit Market price Desired operating income 16% of total assets Total assets $13,700,000 What is the target full product cost in total for the year? Assume all units produced are sold. O A. $13,700,000 O B. $17,040,000 O C. $2,192,000 O D. $96,160

Determinant Company is a price - taker and uses a target - pricing approach. Refer to the following information: Production volume 601,000 units per year $32 per unit Market price Desired operating income 16% of total assets Total assets $13,700,000 What is the target full product cost in total for the year? Assume all units produced are sold. O A. $13,700,000 O B. $17,040,000 O C. $2,192,000 O D. $96,160

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Determinant Company is a price - taker and uses a target - pricing approach. Refer to the following information: Production volume 601,000 units per year $32 per unit Market price Desired operating income 16% of total assets Total assets $13,700,000 What is the target full product cost in total for the year? Assume all units produced are sold. ..... A. $13,700,000 B. $17,040,000 C. $2,192,000 O D. $96,160
Transcribed Image Text:Determinant Company is a price - taker and uses a target - pricing approach. Refer to the following information: Production volume 601,000 units per year $32 per unit Market price Desired operating income 16% of total assets Total assets $13,700,000 What is the target full product cost in total for the year? Assume all units produced are sold. ..... A. $13,700,000 B. $17,040,000 C. $2,192,000 O D. $96,160
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