Peacock,Inc

Peacock,Inc.sells 2,100 kayaks per year at a sales price of $500 per unit.It sells in a highly competitive market and uses target pricing.The company has calculated its target full product cost at $820,000 per year.Fixed costs are $340,000 per year and cannot be reduced.What is the target variable cost per unit assuming units sold are equal to units produced?

A) $229
B) $390
C) $552
D) $162