Answer:
$10,500,000
Step by Step Explanation:
Production volume 500,000 Units per year Market price $24.00 Per unit
Desired operating profit 12% Of total assets Total assets $12,500,000
Total Assets× Percentage of per unit Desired operating profit total assets
$12,500,000 × 12% = $1,500,000
Market price× production volume
$24 × 500,000 = $12,000,000
Therefore;
$12,000,000 - $1,500,000 = $10,500,000
The target full cost in total for the year is $10,500,000
