WellminusBread Grain Company is a priceminustaker and uses target pricing. The company has just done an analysis of its revenues, costs, and desired profits and has calculated its target full product cost. Assume all products produced are sold. Refer to the following information:
Target full product cost $500, 000 per year
Actual fixed cost $280, 000 per year
Actual variable cost $3 per unit
Production volume 150, 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?
(A) $450,000
(B) $220,000
(C) $50,000
(D) $500,000
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “WellminusBread Grain Company is a priceminustaker and uses target pricing. The company has just done an analysis of its revenues, costs, ...” 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
As governor, Marcy has decided that anyone who works but earns less than $20,000 a year will have their health insurance premiums paid for by the government. How does this affect the equilibrium price and quantity of medical services? a.
Answers (1)
As a rule of thumb, how often should an entrepreneur reevaluate her compensation package?
Answers (2)
Orton corporation, which has a calendar year accounting period, purchased a new machine for $80,000 on april 1, 2013. at that time orton expected to use the machine for nine years and then sell it for $8,000. the machine was sold for $44,000 on sept.
Answers (1)
Beach boards reports dividends per share of $1.40 and net income for the year of $150,000. dividend yield is 3.5%. what is beach boards' current stock price?
Answers (1)
Fleming corp. provided services on account. the transaction would be recorded with a credit to:
Answers (1)
New Questions in Business
Put the Procurement to Payment process steps in order of occurence: 1. Vendor Payment 2. Create and send Purchase Order to vendor 3. Create purchase requisition 4. Vendor Selection 5. Shipment ot item ordered from vendor 6. Invoice receipt 7.
Answers (1)
Measuring the price of gasoline in dollars, an economist calculates the price elasticity of demand to be -.5. What would the price elasticity of demand be if the economist had chosen to measure the price of gasoline in pennies rather than dollars? A.
Answers (1)
If the consumption function is C = 100 + 0.75Y and planned investment spending is 500 , what will be the equilibrium level of output? Ye = $ nothing. (Enter your response as an integer.)
Answers (1)
An online medicaladvice company just completed an IPO with an investment bank on a firm-commitment basis. The firm issued 5 million shares of common stock, and the underwriting fees were $2.10 per share. The offering price was $27.90 per share.
Answers (1)
Which of the following is an example of how the principle of beneficence can be applied to a study employing human subjects? Ensuring that the selection of subjects includes people from all segments of the population.
Answers (1)