Donnelley Products Sells 2,500 Kayaks Per Year at a Sales

Donnelley Products sells 2,500 kayaks per year at a sales price of $470 per unit.Donnelley 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 16% on assets.Variable cost is $180 per unit and cannot be reduced.Assume all products produced are sold.What are the target fixed costs?

A) $1,175,000
B) $1,015,000
C) $160,000
D) $565,000