Polynesian Products Sells 1,800 Kayaks Per Year at a Price

Polynesian Products sells 1,800 kayaks per year at a price of $480 per unit. Polynesian sells in a highly competitive market and uses target pricing. The company has calculated its target full cost at $729,000 per year. Total variable costs are $396,000 per year and cannot be reduced. How much are the target fixed costs?

A) $265,000
B) $410,000
C) $396,000
D) $333,000