Back bay company is a price−taker and uses target pricing. refer to the following information: production volume602,000units per yearmarket price$34per unitdesired operating income17%of total assetstotal assets$13,800,000what is the target full product cost per unit? (round your answer to nearest cent.) assume all units produced are sold.

$30.10 per unit

Explanation:

Given that,

Production volume = 602,000 units per year

Market price = $34 per unit

Desired operating income = 17% of total assets

Total assets = $13,800,000

Total income = 17% of Total assets

                      = 0.17 × $13,800,000

                      = $2,346,000

Total sales = Market price × Production volume

                  = $34 per unit × 602,000 units

                  = $20,468,000

Target full product cost in total for the year:

= Total sales - Total income

= $20,468,000 - $2,346,000

= $18,122,000

Target full product cost per unit =

                                                      =

                                                      = $30.10 per unit

the answer is account d