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

Murray Products sells 2,100 kayaks per year at a price of $470 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 16% on assets.Fixed costs are $500,000 per year and cannot be reduced.Assume all products produced are sold.What are the target variable costs?

A) $132,577
B) $990,000
C) $828,600
D) $328,600