Fowler Company is a priceminustaker and uses target pricing. Refer to the following information: Production volume 602 comma 000 units per year Market price $ 30 per unit Desired operating income 17 % of total assets Total assets $ 13 comma 900 comma 000 Variable cost per unit $ 17 per unit Fixed cost per year $ 5 comma 600 comma 000 per year With the current cost structure, Fowler cannot achieve its profit goals. It will have to reduce either the fixed costs or the variable costs. Assuming that variable costs cannot be reduced, what are the target fixed costs per year? Assume all units produced are sold.
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Home » Business » Fowler Company is a priceminustaker and uses target pricing. Refer to the following information: Production volume 602 comma 000 units per year Market price $ 30 per unit Desired operating income 17 % of total assets Total assets $ 13 comma 900