Rocky River Company is a price - taker and uses target pricing. Refer to the following information:Production volumeMarket priceDesired operating incomeTotal assets601,000 units per year$30 per unit17% of total assets$13,800,000What is the target full product cost per unit? (Round your answer to nearest cent.) Assume all units produced aresold.OA. $24.90OB. $26.10OC. $30.00OD. $5.10

Step 1: Calculate desired operating incomeDesired Operating Income = Total assets x Desired…

Answered: Rocky River Company is a price - taker…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 17E

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