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Allen's Ark sells 2100 canoes per year at a sales price of $470 per unit....

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Accounting

Allen's Ark sells 2100 canoes per year at a sales price of $470 per unit. Allen's sells in a highly competitive market and uses target pricing. The company has calculated its target full product cost at $750,000 per year. Total variable costs are $250,000 per year and cannot be reduced. Assume all products produced are sold. What are the target fixed costs?

A) $987,000

B) $237,000

C) $250,000

D) $500,000

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