subject
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

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Answers: 2

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WellminusBread Grain Company is a priceminus
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