Business, 22.04.2021 01:00 caylah6101

WellminusBread Grain Company is a priceminus
taker
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

$510,000

per year
Actual fixed cost

$280,000

per year
Actual variable cost

$2

per unit
Production volume

150,000

units per year
Actual costs are currently higher than target full product cost. Assuming that fixed costs cannot be reduced, what is the target variable cost per unit? (Round your answer to the nearest cent.)
A.
$2.00
B.
$3.40
C.
$1.87
D.
$1.53

Answers: 2

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WellminusBread Grain Company is a priceminus
taker
and uses target pricing. The compa...

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