Allen's Ark Sells 2100 Canoes Per Year at a Sales

Allen's Ark sells 2100 canoes per year at a sales price of $470 per unit.Allen's 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) $987,000
B) $237,000
C) $250,000
D) $500,000