Business
Business, 24.06.2020 02:01, MichaelG07

Ignite Products is a price−taker. The company produces large spools of electrical wire in a highly competitive​ market; thus, it uses target pricing. The current market price of the electric wire is $800 per unit. The company has $3,000,000 in average​ assets, and the desired profit is a return of 77​% on assets. Assume all products produced are sold. The company provides the following​ information:Sales volume 110,000 units per year Variable cosls $725 per unit Fixed costs $13,000,000 per year Currenty the cost structure is suchtha the coripany cannol achieve ils profit objective and must cut osls. I fixed costs cannot nearest cent reduced, how much ucti in variable cost per uril will be nccded to achieve the desired larget? A. reduction in variable oost per unit by 5100.00 B. reduction in variable oost per unit by $19.82 C. reduction in varlable cost per unit by $T25.00 D. reduction in variable cost per uri by $18.18

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Ignite Products is a price−taker. The company produces large spools of electrical wire in a highly...

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