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Electron Manufacturing Is a Price-Taker If Variable Costs Cannot Be Reduced,how Much Reduction in Fixed

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Electron Manufacturing is a price-taker.Electron produces large spools of electrical wire in a highly competitive market; thus,the company uses target pricing.The current market price of the electric wire is $760 per unit.The company has $3,200,000 in average assets,and the desired profit is a return of 5% on assets.Assume all products produced are sold.The company provides the following information:  Sales volume 110,000 units per year  Variable costs $660 per unit  Fixed costs $12,000,000 per year \begin{array} { | l | r | l | } \hline \text { Sales volume } & 110,000 & \text { units per year } \\\hline \text { Variable costs } & \$ 660 & \text { per unit } \\\hline \text { Fixed costs } & \$ 12,000,000 & \text { per year } \\\hline\end{array} If variable costs cannot be reduced,how much reduction in fixed costs will be needed to achieve the profit target?


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