Rica Company is a price-taker and uses a target-pricing approach

Refer to the following information:

Production volume 600,000 units per year
Market price $30 per unit
Desired operating income 17% of total assets
Total assets $13,900,000

What is the desired profit for the year?
A) $102,000
B) $18,000,000
C) $4,100,000
D) $2,363,000


D .D)
Total assets $13,900,000
Desired operating income % x 17%
Desired profit $2,363,000

Business

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