Haskins Products sells 2 comma 200 kayaks per year at a sales price of $ 450 per unit. Haskins sells in a highly competitive market and uses target pricing. The company has calculated its target full product cost at $ 720 comma 000 per year. Total variable costs are $ 330 comma 000 per year and cannot be reduced. Assume all products produced are sold. What are the target fixed costs?
$ 390 comma 000
B. $ 990 comma 000
C. $ 270 comma 000
D. $ 330 comma 000
Target full product cost = Total Variable Cost + Target fixed costs
720,000 = 330,000+Target fixed costs
Target fixed costs = 720,000-330,000 = 390,000
Option A
Haskins Products sells 2 comma 200 kayaks per year at a sales price of $ 450...
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