Which of the following statements is an accurate interpretation of the current ratio?
A) A current ratio of 1.5 or higher is considered a high-risk ratio.
B) A current ratio below 1.00 is considered a good and safe ratio.
C) A current ratio of 2.0 indicates strong ability to pay current liabilities.
D) A current ratio of 0.60 or lower is a good and safe ratio.
C
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A. empowerment B. enthusiasm C. cooperation D. amount of experience
Launch Company sells 2500 paddleboards per year at a sales price of $470 per unit. Launch sells in a highly competitive market and uses target pricing. The company has $800,000 of assets, and the shareholders wish to make a profit of 16% on assets. Variable cost is $190 per unit and cannot be reduced. Assume all products produced are sold. What are the target fixed costs?
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