Business, 01.12.2021 01:00 hanjonez

Pueblo Products is a price-taker and uses target pricing. Pueblo has just done an analysis of their revenues, costs and desired profits, and has calculated its target full cost. Please refer to the following information: Target full cost $400,000 Per year Actual fixed cost $160,000 Per year Actual variable cost $1.00 Per unit Production volume 250,000 Units per year Actual costs are currently higher than target full cost. Assuming that fixed costs are predominantly related to depreciation expense and CANNOT be reduced, how much is the target variable cost per unit

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Pueblo Products is a price-taker and uses target pricing. Pueblo has just done an analysis of their...