Rica company is a priceminustaker and uses a targetminuspricing approach. refer to the following information: production volume 602 comma 000 units per year market price $ 30 per unit desired operating income 16% of total assets total assets $ 13 comma 900 comma 000 what is the desired profit for the year?

$ 15,836,000

Explanation:

Given:

Production volume = 602,000 units

Market Price per unit = $ 30

Desired operating income = 16% of the total assets

Total assets = $ 13,900,000

Thus,

Desired operating income = 0.16 × $ 13,900,000 = $ 2,224,000

Now,

the desired profit = Total sales - Total income

or

Desired profit = (Production volume × Market Price per unit ) - Total income

on substituting the respective values, we have

Desired profit = (602,000 × $ 30) -  $ 2,224,000

or

Desired profit = $ 18,060,000 - $ 2,224,000

or

Desired profit = $ 15,836,000

answer; i believe the answer you are searching for is (minimum payment)