Paddle Paradise, Inc. sells 2500 canoes per year at a sales price of $470 per unit. It sells in a highly competitive market and uses target pricing. The company has calculated its target full product cost at $820,000 per year. Fixed costs are $330,000 per year and cannot be reduced. What is the target variable cost per unit assuming units sold are equal to units produced?

A) $196
B) $328
C) $460
D) $132


A) $196

Business

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Business