WellBread Grain Company is a pricetaker and uses target pricing The company has just done an analysis of its revenues, costs, and desired profits and has calculated its target full product cost Assume all products produced are sold Refer to the following information Target full product cost $510,000 per year Actual fixed cost $280,000 per year Actual variable cost $2 per unit Production volume 150,000 units per year Actual costs are currently higher than target full product cost Assuming that fixed costs cannot be reduced, what is the target variable cost per unit (Round your answer to the nearest cent )

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Question: WellBread Grain Company is a pricetaker and uses target pricing. The company has just done an analysis of its revenues, costs, and desired profits and

WellBread

Grain Company is a pricetaker and uses target pricing. The company has just done an analysis of its revenues, costs, and desired profits and has calculated its target full product cost. Assume all products produced are sold. Refer to the following information:

Target full product cost	$510,000	per year
Actual fixed cost	$280,000	per year
Actual variable cost	$2	per unit
Production volume	150,000	units per year

Actual costs are currently higher than target full product cost. Assuming that fixed costs cannot be reduced, what is the target variable cost per unit? (Round your answer to the nearest cent.)

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