Haskins Products sells 2,100 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 $740,000 per year. Total variable costs are $330,000 per year and cannot be reduced. Assume all products produced are sold. What are the target fixed costs?
A) $945,000
B) $205,000
C) $330,000
D) $410,000
D .D)
Target full product cost $740,000
Less: Variable costs 330,000
Target fixed costs $410,000
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