Fantabulous Products Sells 2,000 Kayaks Per Year at a Price

Fantabulous Products sells 2,000 kayaks per year at a price of $450 per unit. Fantabulous sells in a highly competitive market and uses target pricing. The company has $1,000,000 of assets and the shareholders wish to make a profit of 18% on assets. How much is the target full product cost?

A) $1,800,000
B) $720,000
C) $1,062,000
D) $712,500