Discourse Stationery Company is a price-taker and uses target pricing. The company has completed an analysis of its revenues, costs, and desired profits and has calculated its target full product cost. Refer to the following information: Target full product cost $500,000 per year Actual fixed cost $270,000 per year Actual variable cost $3 per unit Production volume 140,000 units per year Actual costs are currently higher than target full product cost. Assume all products produced are sold. Assuming that variable costs are dependent on commodity prices and cannot be reduced, what is the target fixed cost?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Discourse Stationery Company is a price-taker and uses target pricing. The company has completed an analysis of its revenues, costs, and ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The best way to treat a computer-based customer relationship manageent system is to consider it as a/an ___system? A0 Back-ended B integrated C. Bridge D front-end
Answers (2)
What are MNCs? What are their feature? How they stimulise globalistion process?
Answers (2)
Which earned value management (evm) agency is responsible for ensuring evm is applied with integrity and is an effective process?
Answers (1)
What is one of the opportunity costs of attending college?
Answers (1)
Le Place has sales of $439,000, depreciation of $32,000, and net working capital of $56,000. The firm has a tax rate of 34 percent and a profit margin of 6 percent. The firm has no interest expense. What is the amount of the operating cash flow?
Answers (1)
New Questions in Business
A gift that might otherwise be viewed as a future interest in a trust can be treated as a present interest gift if:
Answers (1)
Curtain Co. paid dividends of $10,000; $12,500; and $14,000 during Year 1, Year 2, and Year 3, respectively. The company had 2,100 shares of 5.5%, $100 par value preferred stock outstanding that paid a cumulative dividend.
Answers (1)
Describe how legal contracts provide incentives for people to exchange goods and services
Answers (1)
List four wan technologies that are carried over the pstn.
Answers (1)
Which of the events is likely to occur when the business cycle is in a period of recession (contraction) ? an increase in the standard of living an increase in unemployment an increase in GDP (gross domestic product) an increase in economic growth
Answers (1)