Haskins Products Sells 2,200 Kayaks Per Year at a Sales

Haskins Products sells 2,200 kayaks per year at a sales price of $500 per unit.Haskins sells in a highly competitive market and uses target pricing.The company has calculated its target full product cost at $750,000 per year.Total variable costs are $250,000 per year and cannot be reduced.Assume all products produced are sold.What are the target fixed costs?

A) $1,100,000
B) $350,000
C) $250,000
D) $500,000