Solution-Find what are the target variable costs per unit

Find what are the target variable costs per unit per year

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Reference no: EM132500671

Aguilar Company is a price-taker and uses target pricing. Refer to the following information:

Production volume	601,000	units per year
Market price	530	per unit
Desired operating income	17%	of total assets
Total assets	513,800,000
Variable cost per unit	519	per unit
Fixed cost per year	55,500,000	per year

Question 1: With the current cost structure, Aguilar cannot achieve its profit goals. It will have to reduce either the fixed costs or the variable costs. Assuming that fixed costs cannot be reduced, what are the target variable costs per unit per year? Assume all units produced are sold. (Round your answer to the nearest cent.)

Reference no: EM132500671

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Find what are the target variable costs per unit per year

Reference no: EM132500671

Reference no: EM132500671

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