Murray Products Sells 2,100 Kayaks Per Year at a Price

Murray Products sells 2,100 kayaks per year at a price of $450 per unit.Murray sells in a highly competitive market and uses target pricing.The company has $990,000 of assets and the shareholders wish to make a profit of 17% on assets.Fixed costs are $450,000 per year and cannot be reduced.Assume all products produced are sold.What are the target variable costs?

A) $132,040
B) $990,000
C) $776,700
D) $326,700