Launch Company Sells 2200 Paddleboards Per Year at a Sales

question 123

Multiple Choice

Launch Company sells 2200 paddleboards per year at a sales price of $470 per unit.Launch sells in a highly competitive market and uses target pricing.The company has $900,000 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)$1,034,000
• B)$881,000
• C)$153,000
• D)$441,000

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