Question

Acton Company is a price-taker and uses target pricing. Refer to the following information: With the current cost structure, Acton cannot achieve its profit goals. It will have to reduce either the fixed costs or the variable costs. Assuming that variable costs cannot be reduced, what are the target fixed costs per year? Assume all units produced are sold.

Answer 1

To reduce the target fixed costs per year:

Step-by-step explanation:

They might reduce ad costs, paid research channels, reengineering staff and workforce employees, reduce power consumption through sustainable actions like open windows instead of using air-conditioned, natural light might also be introduced.