Back Bay Company Is a Price-Taker and Uses Target Pricing

Back Bay Company is a price-taker and uses target pricing.Refer to the following information: $$\begin{array} { | l | r | l | } \hline \text { Production volume } & 602,000 & \text { units per year } \\\hline \text { Market price } & \$ 32 & \text { per unit } \\\hline \text { Desired operating income } & 17 \% & \text { of total assets } \\\hline \text { Total assets } & \$ 13,700,000 & \\\hline\end{array}$$ What is the target full product cost per unit? (Round your answer to nearest cent.) Assume all units produced are sold.

A) $32.00
B) $28.13
C) $5.44
D) $26.56

Correct Answer:

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