Revolve Company Is a Price-Taker and Uses a Target-Pricing Approach

Revolve Company is a price-taker and uses a target-pricing approach.Refer to the following information: $$\begin{array} { | l | r|l| } \hline \text { Production volume } & 602,000 &\text { units per year } \\\hline \text { Market price } & \$ 30 &\text { per unit } \\\hline \text { Desired operating income } & 16 \%& \text { of total assets } \\\hline \text { Total assets } & \$ 13,700,000 \\\hline\end{array}$$ What is the target full product cost in total for the year? Assume all units produced are sold.

A) $96,320
B) $15,868,000
C) $13,700,000
D) $2,192,000

Correct Answer:

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