Origami Company is a price-taker and uses target pricing. Please refer to the following information: Production volume 500,000 Units per year Market price $24.00 Per unit Desired operating profit 12% Of total assets Total assets $12,500,000 How much is the target full cost in total for the year

$10,500,000

Step by Step Explanation:

Production volume 500,000 Units per year Market price $24.00 Per unit

Desired operating profit 12% Of total assets Total assets $12,500,000

Total Assets× Percentage of per unit Desired operating profit total assets

$12,500,000 × 12% = $1,500,000

Market price× production volume

$24 × 500,000 = $12,000,000

Therefore;

$12,000,000 - $1,500,000 = $10,500,000

The target full cost in total for the year is $10,500,000

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