Donnelley Products Sells 2,000 Kayaks Per Year at a Sales

Donnelley Products sells 2,000 kayaks per year at a sales price of $460 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 17% on assets.Variable cost is $200 per unit and cannot be reduced.Assume all products produced are sold.What are the target fixed costs?

A) $920,000
B) $750,000
C) $170,000
D) $350,000